Introduction
In modern times, many goods are traded in global financial markets. Such goods include gold, sugar, butter, coffee, and others. One of the most popular products is wheat, since this is a unique crop that is widely used in people’s everyday lives and agriculture.
Wheat is a concentrated form of carbohydrates, an essential source of food for animals and humans (Giraldo et al., 2019, p. 1). Grain production largely depends on regional factors, such as climate and geographical location. The arid climate and dry soil hinder the cultivation of crops, while excessively moist soil slows wheat production.
The success of growing grain in a particular region also depends on temperature, the amount of precipitation, soil fertility, and topography (Giraldo et al., 2019, p. 2). Wheat is subject to rapid price changes, making it attractive to sales professionals whose activities aim to make transactions quickly. Wheat is also a pretty attractive commodity for the Australian market, but there are active fluctuations in the market price for this product.
Trading Mechanisms and Market Dynamics of Wheat
Wheat trading is carried out through futures on various exchanges, but there are two primary exchanges on which wheat futures are specially quoted. Many factors, including drought, flooding, and government policy on imports, influence the grain market. These aspects directly impact the price of wheat, but there are still factors that can affect the price reduction. Such elements include changes in demand and ever-increasing competition in related offers, such as rice or corn. Financial markets are directly connected with the physical wheat market since large buyers set the cost of goods depending on the purchase price from traders.
Economic Significance and Price Fluctuations in Australia Over the Last 12 Months
The wheat market in Australia was significantly affected by rainfall that triggered flooding in some areas. Nevertheless, those areas that were not flooded were able to exceed the damage caused dramatically, and therefore, in 2022-23, the yield on wheat production volumes will reach a record $15 billion (Dahl, 2023). According to data for 2021-22, the record amount of sales amounted to $13.1 billion, demonstrating that in 12 months, Australia could break its wheat sales record (Dahl, 2023). Linking these statistics in the field of the grain market with the welfare of Australia, it is evident that this country has achieved significant success in the wheat trade, which has had a beneficial effect on the country’s domestic economy. Even if the price of wheat decreases slightly in the future, it will remain high and allow the government to continue its internal development.
Conclusion
In conclusion, wheat is a promising direction for trade in Australia as the demand for this type of grain is relatively high. Even though climate change is observed in Australia, it can lead to the flooding of territories and a decrease in the quality of goods; nevertheless, those territories that have not been flooded show significant results in providing financial markets with goods. The sale of wheat significantly impacts the Australian economy, as profitable sales in financial markets bring high incomes that constantly break records in their amount. Based on statistics for 12 months, an increase in wheat sales of almost $2 billion is expected, which is undoubtedly a high indicator of sales success.
Reference List
Dahl, E. Wheat (2023). Web.
Giraldo, P., Benavente, E., Manzano-Agugliaro, F., and Gimenez, E. (2019) ‘Worldwide research trends on wheat and barley: A bibliometric comparative analysis’, Agronomy, 9(7), pp. 1-28.