February 14, 2012

Australia's wheat exports to China could double this year

Australian Standard White grade wheat of 10% protein is particularly competitive. Recently, about 93,000 tonnes were exported to China, where it will likely be used as part of the feed ration for hogs, Rabobank said.

Rabobank estimates output will hit a record 27.7 million tonnes this crop year ending March 31, while the Australian Bureau of Agricultural and Resource Economics and Sciences (Abares) forecasts it will hit 28.3 million tonnes.

Abares will review its production estimate Tuesday.

Australia's annual domestic consumption is around six million tonnes, and the remaining grain is available for export.

Rabobank estimates exports this marketing year ending September 30 will reach a record 21 million tonnes.

"Prices continue to trade under international values as the large domestic stock position weighs heavily on the market," the bank said.

Last week, the Australian Bureau of Statistics reported December exports took total shipments in the current marketing year to 4.99 million tonnes, up 31% from 3.8 million tonnes a year ago.

ASX March milling wheat futures deliverable port in New South Wales last settled at AU$206.50 (US$220.69)/tonne, down AU$270 (US$288.55)/tonne in early September.