April 15, 2008

Australia gears for record wheat crop this year

Australia, the world's sixth-largest wheat exporter, is poised to sow another all-time record wheat crop in 2008, according to an investment group.

Mark Irwin chief executive officer of Sydney-based Grain Corp Ltd. said the record crop is "very much set up" and is going to be a strong harvest if the country gets some rain in the coming months.

Australia may produce 26 million tonnes of wheat this year, its second-biggest crop ever, up from last year's drought- reduced 13.1 million tons, according to the government's commodity forecaster.

Grain farmers in Australia are waiting for rain at the end of this month to start sowing winter crops including wheat, barley and canola. Irwin said some grain growers in central Queensland state have started planting wheat and summer rains in New South Wales state have been "exceptional."

Irwin, who took the top job at eastern Australia's largest grain handler less than three weeks ago, said farmers are already expecting a "volume and yield drive this year" as all needed inputs are expected to sprout the "best yields." 

Sorghum crop harvest, as Irwin describes as "fantastic" has also begun. Sorghum is mainly used to feed livestock,