Australian 2009-10 wheat crop forecast up at 23.2 million tonnes

A production forecast from an Australian wheat crop to be harvested in late 2009 was increased to 23.2 million tonnes, up 2.7 percent on a June estimate and if achieved, up 8.4 percent compared with last year, according to a monthly agribusiness review issued Wednesday (July 22) by the National Australia Bank.

"Average to above average rainfall throughout much of the wheatbelt has lifted the prospect of improved yields in 2009-10, although this remains highly contingent on good spring rainfall," NAB Agribusiness Economist Frank Drum said in a monthly review.

NAB's forecast is at the upper end of projections, with a forecast a month ago by the government's Australian Bureau of Agricultural and Resource Economics estimating output for this crop year ending March 31, 2010 at 22.0 million tonnes.

After annual domestic wheat demand of almost 7 million tonnes is met, the balance of production is available for export, making Australia a major supplier of global traded wheat.