Australian wheat prices hit multi-month highs amid diesel and fertilizer concerns

Australian wheat prices reached multi-month highs on March 20, driven by rising domestic logistics costs and subdued grower sales amid concerns over diesel and fertilizer availability during the Middle East conflict. According to Platts, Australian Standard White (ASW1) rose $4/mt to $259/mt FOB Kwinana, while Australian Premium White (APW) increased $2/mt to $265/mt, marking the highest levels in 16–20 months.

The Middle East conflict has caused a sharp rise in oil and fertilizer prices, putting pressure on the Australian wheat market through higher production and logistics costs. While growers have sufficient fertilizer for winter crop planting, they are concerned about availability for later applications, according to Australian traders.

Growers may also favor less fertilizer-intensive crops such as barley if fertilizer prices continue to climb. Diesel shortages are adding further pressure, affecting farm machinery operations, domestic grain transport, and export freight. Many farmers are already stockpiling diesel to secure sowing operations, even if market conditions worsen.

Domestic logistics costs for transporting grain by rail and truck have increased, while grower selling remains limited, supporting wheat prices. Much of the wheat is expected to remain with farmers until the next planting season, despite higher production costs due to geopolitical tensions.

Additional support comes from a strong Australian dollar, which exceeded 70 US cents in February 2026—the highest level since January 2023. This strengthens the competitiveness of Australian wheat exports and provides further upside potential for domestic wheat prices.

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