October 11, 2007

Early Australian wheat harvest shows poor quality grain

Analysis of early harvested wheat in southern Queensland and northern New South Wales states shows high levels of screenings, or small, poor quality grain, Australia's GrainCorp Ltd. (GNC.AU) reported Thursday (Oct 11).

"The high screenings will be problematic for milling grades in New South Wales and will tighten up an already tight milling wheat supply and demand balance," the company said in a report in The Land weekly newspaper.

Despite the high level of screenings in the mostly high protein wheat making up the early harvest, GrainCorp said grain quality overall in southern Queensland should be good.

That said, lower protein grades are expected due to "the soft finish" to the season in the region, which has benefited from good rainfall events through the growing season, it added.