September 10, 2009

Australia may produce its largest wheat crop in four years after recent rain eased concern for eastern growing areas.

Australia is forecast to harvest 23 million tonnes of wheat, said Mike Chaseling, deputy chairman of Emerald Group Australia Pty.

Last year, Australia harvested 21.4 million tonnes.

Wheat will be harvested in about November, but the crop relies on rain in September to boost yields. Wheat prices have plunged 66 percent from last year's record on analyst forecasts for the second-largest global harvest on record.

Growers will need all the yield they can get to compensate for the prices which have suffered a sharp decline, said Chaseling.

Western Australia, the nation's top wheat grower and exporter, may produce 9.5 million tonnes this harvest, up seven percent from a year earlier, Australia & New Zealand Banking Group Ltd. said. That would be the state's largest crop since 2003-04.