September 7, 2006

Australia's GrainCorp cuts winter crop intake estimate

Australian grain services company GrainCorp Ltd Thursday (Sep 6) said it has downgraded its estimate for the volume of winter crops to be received by its network of storages due to dry weather.

GrainCorp, the dominant grains storage and handling concern in eastern Australia, did not issue a new intake target given what it said was the significant variability of potential crop yields at this time.

The lack of rain across all areas in August has affected yield potential and accordingly the previous forecast receival target of 9.0 million tonnes would not be achieved, the company said in a statement.

GrainCorp's actual receivals of winter crops in the last crop year ended March 31 were 9.8 million tonnes.

The company's statement comes after rains of 10-25 millimetres across Victoria and southern New South Wales the past two days. It said the rains are helping crop conditions, although more rain is needed in the next two weeks.

Average crop yields are still possible around the Queensland/New South Wales border, northwest New South Wales and in parts of western Victoria, but other regions would not have average yields without good rains now, it said.

Last week, GrainCorp received its first grains from the harvest in central Queensland, which traditionally gets underway many weeks before southern areas, it said.