Australian wheat dries before winter crop sowing

Wheat lands in Australia's southeast and southwest regions - potentially important sources of global supply - are dry heading into the autumn planting period, according to a national climate and agricultural update produced by federal and state government agencies and issued Thursday (Apr 9).

 

Apart from around Esperance town in Western Australia's southeast cropping zone, there was insufficient summer rain in most of the remainder of the state's wheat belt to boost stored soil moisture for winter crops, the report said.

 

"Although grain price forecasts are encouraging growers to maintain planting programs similar to last year, deficient soil moisture may result in a decline in cropping area."

 

Western Australia produced 8.92 million tonnes of wheat in the last crop year ended March 31, or 42 percent of the national output of 21.4 million tonnes estimated by the government's chief commodities forecaster, the Australian Bureau of Agricultural and Resource Economics (ABARE).

 

With nearly all Western Australian wheat available for export, the state is an important supply source for global trade.

 

Australian wheat output in the current crop year is estimated to edge a little higher to 22.1 million tons, assuming average seasonal conditions, ABARE forecast a month ago.

 

Meanwhile, large areas of winter crop lands in Australia's southeast, including in Victoria, southern New South Wales and the eastern half of South Australia received below average rainfall in the calendar first quarter, according to the update.

 

This compounded the impact of annual data, which show that in the 12 months ended March 31, rainfall was well below average across the southeast of the continent.

 

Drought in Australia's southeast cut wheat production in Victoria last crop year to 1.5 million tonnes, just 75 percent of a 5-year annual average, and in South Australia to 2.3 million tonnes from a 5-year annual average of 2.7 million tonnes.

 

Both these states can potentially add considerable quantities to national wheat export availability.

 

The national rainfall outlook for the calendar second quarter - when most winter crops are planted - suggests higher than average rainfall across northeast New South Wales and southeast Queensland, but lower than average rainfall is more likely to occur in South Australia and Victoria, according to the government's Bureau of Meteorology.