Traders have bought up nearly two million tonnes of Australian wheat for the production of animal feed.
According to Reuters, the stockpiling has come from firms expecting to see huge demand for wheat across the globe.
This will push up the price of the agricultural commodity, with animal feed manufacturers looking to Australia for cheaper grades.
One Singapore-based trader told the new agency: "If you look at what is happening to corn and feed prices, there is strong interest in Australian feed."
"I think there will be demand from all over – the Middle East, Europe and Asia."
Other traders reported that Chinese firms are currently negotiating a deal to take up to 200,000 tonnes of Australian feed wheat.
In the UK, regional food group Deliciouslyorkshire recently announced it was trying to convince supermarkets to absorb the escalating cost of animal feed by paying farmers more for the meat they buy.
Typical Guttridge equipment used in the animal feed industry includes; conveyors – screw conveyors – chain conveyors – belt conveyors
