January 30, 2007

Australia's 2007 grain forecast looks positive

With prices for livestock improving in Australia, grain forecasters expect a big turnaround this year.

With some early rains and talk of the El Nino system being on the way out growers have started planning for winter season plantings, according to ABC news.

Analysts expect a good crop harvest this year.

Australia's wheat production could more than double to 26 million tonnes next crop year on average seasonal conditions, said Ron Storey of Australian Crop Forecasters.

In New Wales, summer crops are now expected to be at or below the 2002-2003 drought season.

There is only half the area sown to summer crops as last year.

The lack of rain has almost halved the planting for sorghum and the crop is already suffering due to hot and dry weather.

About 10 per cent of the cotton crop was ploughed back in due to lack of irrigation water with around 800,000 bales now expected to be produced.

The country's drought has affected the plantings of wheat, canola and pulses.

Almost 200 of the 500 crop sites have failed with Victoria, southern New South Wales and Queensland the hardest hit.

But manager Alan Bedggood sees a positive side to it as he feels this will help the growers see how the varieties have performed in different environments.