April 30, 2004

Australia Grain Inventories Down 23%

Grain inventories in Australia fell 23% in the calendar first quarter to close at 24.2 million metric tons from 31.3 million tons on December 31, 2003, the government's Bureau of Statistics reported Friday.

But grain stocks held by bulk handling companies and major traders on March 31 were still nearly double the 13.0 million tons held a year earlier, a relatively low figure that reflected the impact of a drought in 2002 on grain production.

The figures are contained in the bureau's quarterly publication of grain inventories.

Wheat stocks as at March 31 were 16.4 million tons, down 20% from 20.5 million tons on Dec. 31, but 78% up on the 9.2 million tons held a year earlier, it said.

Winter crops mostly are harvested in November and December, when exporters intensify sales and shipping efforts.

Australia usually is a major global supplier of winter grains, including wheat and barley.

The bureau's figures for grain inventories shouldn't be taken as national production figures as they don't capture grain held on farms, direct sales from farms, grain already used and exported, or held by smaller traders.

Barley stocks as at March 31 of 5.4 million tons were down from 7.8 million tons on Dec. 31, but more than double the 2.5 million tons held on March 31, 2003.