Australia: Increased grain exports from Russia could lead to world prices falling 2.6 % for barley, according to last ABARE forecast. Australia feed barley prices would rise by 4 % to A$165. The Age said in a statement that Australian grain farmers are likely to enjoy higher prices in 2005-06 compared with this financial year. But in the medium term, prices are projected to fall in real terms. This is because of China's role in grain import and export markets, Russia's expansion as a producer and exporter, and continued rapid production growth in Brazil and Argentina. These were the key features of the outlook for grains. The forecast was released last week at the Australian Bureau of Agricultural and Resource Economics (ABARE) Outlook Conference.

ABARE said Russia was becoming a small but important exporter of wheat and barley, mainly to the Middle East, where Russia has a freight advantage. Increased exports from Russia could lead to world prices falling 2.8 % for wheat and 2.6 % for barley.

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