July 27, 2006

Australia's Graincorp trims winter crop forecast

Australian grain services company Graincorp Ltd Thursday (Jul 27) estimated it would receive 9 million tonnes of winter grains this crop year ending Mar 31, 2007, which if achieved, would be down from the 9.8 million tonnes in the last crop year.

The intake forecast follows widespread rain in July that helped growers complete plantings in Eastern Australia, where the company operates the major but not the only network of upcountry silos. The company holds a monopoly over grain export terminal operations along the east coast.

Rain in June and July is providing some optimism among growers, particularly in central Queensland, where conditions are among the best for at least five years, while Southern Queensland remains well below average, it said.

In Victoria state's western growing districts, rain also lifted crop prospects, it said.

Growers have sown a larger percentage of their land to wheat this year, reflecting the impact of high international prices, it said in a statement.

Graincorp also said a net profit for this fiscal year ending Sep 30 would more than double to A$26 million-A$30 million (US$19.9 million to US$22.9 million) from an actual profit of A$12.1 million (US$9.2 million) in the last fiscal year.

GrainCorp's statement followed a downgrading in a wheat production forecast to 18 million-20 million tonnes from a previoUS range of 23 million-25 million tonnes by wheat exporter AWB Ltd due to poor weather in Western Australia.

Actual national output last crop year ended Mar 31, 2006, was at 25 million tonnes, most of which would be exported.