June 8, 2006

Australia's CBH projects lower winter wheat crop

Intake of new winter crops, mainly wheat, by Western Australian state logistics concern Cooperative Bulk Handling Ltd, has the potential to reach 11.6 million tonnes, down from a bumper 12.6 million tonnes last crop year, company spokeswoman Nicole Penter said Thursday (Jun 8).

Typically, 70 percent of winter crop production in the state is wheat, suggesting new crop wheat intake would be around 8.1 million tonnes, down from 8.8 million tonnes for the last crop.

"If we don't get any rain over the next week or so, that would drop further," Penter said.

Many growers in Western Australia state are still waiting to start or resume plantings after a dry spell in recent weeks that followed good rains in some areas early May, she said.

The company usually does not issue an intake forecast until August after growers submit planting figures.

Growers in Western Australia like to plant winter crops in May to maximise yield potential but can sow into July at some risk to yield.

The company is the only major silo concern operating in the state and its intake figures are a reasonable proxy for state production.

Nearly all the wheat and barley produced is available for export, making the state a major cereal provider to the global trade.