Farmers risk wheat losses as they hold back sales over weather fears

Australian farmers are holding back new-crop wheat sales on fears an El Nino weather pattern will slash yields, though their cautious approach means they risk losing sales to European rivals in Asian markets.

Russia and Ukraine are making inroads in countries such as Indonesia, which is traditionally dominated by Australia, while a big global crop could push prices even lower by the time Australia’s new wheat marketing season starts in September.

Despite the best start to an Australian season for many years, its farmers have shied away from exports — selling only about 10% of the new crop forward compared with a typical 30% in a good year.