Australia wheat exports to hit record A$6.16 billion in 2009-10 

The value of Australia's wheat exports will surge next fiscal year to a record level as the industry continues to produce relatively large crops after several years of drought, the government's chief commodities analyst, Australian Bureau of Agricultural and Resource Economics (ABARE), forecast Tuesday.

 

Australian wheat exports next fiscal year are forecast at 14.6 million tonnes valued at A$6.16 billion compared with exports of 12.8 million tonnes valued at A$5.16 billion this fiscal year ending June 30, according to Abare's quarterly commodity outlook publication.

 

Increased exports will be underpinned by a forecast of wheat production rising to 22 million tonnes next fiscal year from 21.4 million tonnes this fiscal year, and 13.6 million tonnes in 2007-08, Abare forecast, reiterating a projection in a Crop Report issued early June.

 

After the annual domestic demand of almost seven million tonnes is met, the remainder of production is available for export, usually making Australia a major global supplier.

 

Abare estimates new crop pool returns for the benchmark Australian Premium White grade wheat of 10 percent protein will fall to A$291/tonne next fiscal year from A$300/tonne in 2008-09 and A$423/tonne in 2007-08. The pool return is an average across major companies offering collective sales pool.

 

The price of the key US hard red winter wheat, free on board US Gulf of Mexico, will average US$259/tonne next fiscal year, down from US$270/tonne this fiscal year and US$362/tonne in 2007-08, it said.

 

For the next fiscal year, Abare projects world production at 647 million tonnes, consumption at 641 million tonnes, closing inventories at 162 million tonnes and global trade at 115 million tonnes.

 

For the current fiscal year, it has estimated production at 687 million tonnes, consumption at 642 million tonnes, closing inventories at 155 million tonnes and global trade at 118 million tonnes.

 

US$1 = A$1.27596 (Jun 23)