January 18, 2011

GrainCorp's grain receivables up at 12.6 million tonnes

Wheat and other winter grains receivables to bulk handler GrainCorp Ltd.'s network from a rain-delayed and disrupted harvest in Australia's eastern states rose 2.4% to 12.6 million tonnes in the week ended Monday (Jan 17).

But the rate of the increase was sharply lower than the previous week due to more rain in southeastern Australia.

The quality of unharvested grain that received further rain likely will be reduced, the company stated.

Supply of grain to domestic and export customers will be impacted by flooding in northwestern Victoria state that has affected rail infrastructure, it said.

In Queensland, export operations continue at Mackay and Gladstone, and while the Port of Brisbane has reopened, flood damage to up-country rail lines servicing the port will affect exports, possibly for up to three months.

GrainCorp previously advised it expected to receive 10 million-13 million tonnes of grain into its system in the fiscal year ending September 30.

Harvest is winding down in northern New South Wales but is continuing in central and southern areas of the state, as well as in Victoria.

The annual harvest of winter grains, mostly wheat, is running about a month behind schedule in eastern Australia due to heavy rains that delayed ripening of crops and disrupted harvest activity.

Considerable quantities of wheat were downgraded to feed and lower-quality food grade from hard milling grade, while barley was downgraded to feed grade from malting grade, supporting domestic and global cereal prices.