Wheat Piling Up On Docks

Thursday, 30/10/2008

Wheat is piling up beside ports in south America and the Black Sea as grain buyers struggle to secure credit.

It's because of the global economic crisis, as well as the drop in grain values, which is seeing banks hold onto their money more tightly.

While Australian companies say they're not worried about selling this year's harvest, it seems local farmers and grain analysts aren't so sure.

Anthony Temple is a grain marketing expert in Vancouver and says Australian companies will be affected.

"I think all grain companies will be affected, but I have a lot of confidence in the grain business in finding ways that they will protect themselves," Mr Temple says.

"Things like performance bonds, and indeed they'll be very careful about checking credit."