South Australia records six-year high in grain exports

Grain exports from South Australia rose to a six-year high in May and remain strong this month, according to Viterra Inc.

 

Viterra shipped more than 600,000 tonnes of grain through its South Australian ports in May, the largest amount in a single month since 2004, the company said in a statement.

 

Exports in April and May were 1.2 million tonnes, bringing total shipments in the seven months ended May 31 to 2.6 million tonnes.

 

"June is looking to be another strong month of shipping and there are reasonable bookings until the end of July," it said.

 

The government's Bureau of Statistics reported a sharp build-up in wheat inventories in South Australia, where stocks more than quadrupled to 2.9 million tonnes at the end of May from 671,000 tonnes a year earlier.

 

National wheat stocks held by bulk handling companies fell 13% in May compared with April, to 11.15 million tonnes, but were 28% higher on year.

 

According to Viterra, less grain was shipped during the harvest in November and December than the previous year due to factors including high ocean freight rates, large global grain stocks and low grain prices, which left growers reluctant to sell.

 

Commonwealth Bank of Australia commodity strategist Luke Mathews said the on-year increase in stocks will likely maintain pressure on wheat prices across the country, with the most pressure felt in southern Australia.

 

The statistics bureau will release official wheat export data for May on July 7.