September 10, 2009
Australian agri minister flags wheat crop upgrade next week
Australia wheat crop has received good rains in most areas, Tony Burke, federal minister for agriculture, fisheries and forestry said Thursday (September 10), flagging an upgrade to wheat crop next week.
The Australian Bureau of Agricultural and Resource Economics is due to update its crop report next Tuesday, with current estimates at around 22 million tonnes. Market participants peg wheat output for the 2009-10 crop year at 22 million to 23 million tonnes.
Australia produced 21 million tonnes of wheat last year, making the country a significant exporter. September and October are key growth months for the crop, and the recent rains over the weekend and mid-week in the biggest producing areas have helped alleviate earlier concerns of damage to crops and low yields.
"We've had long overdue rains in northern New South Wales and in southern Queensland," Burke said. "The rain has been needed there for a long time and we have had significant rainfall there over the last week. So a lot of crops that had looked like they were going to fall over are now showing some strength in southern Queensland and northern New South Wales."
The wheat crop in Western Australia was in very good shape, he said. Western Australia department of agriculture and food forecast an output of 7.5 million to 9 million tonnes. It also looks to be in good shape in Victoria state, after five years of decimated crops due to the lack of rain.
Still, the minister flagged tough conditions throughout central New South Wales, where downgrades appear likely. Market participants said parts of the wheat crop in those areas have been turned over to hay.
"But, the rain hasn't been uniform across those areas and some patches there are still doing it fairly tough," Burke said.
The Australian Bureau of Meteorology Tuesday warned that an El Nino weather phenomenon was still developing over the Pacific Basin, which tends to be associated with drier and hotter weather than normal. But the bureau also said indicators showed slower progress, raising hopes of more positive crop conditions.
