Australia wheat stocks fall ahead of harvest

Australia's wheat stocks posted their biggest fall in three months in August, ensuring there will be not be a large supply overhang when harvesting of the new crop cranks up in coming weeks.

The government's commodity forecaster said on Wednesday (October 14) that Australia's net wheat stocks dropped by 1.68 million tonnes to stand at 2.44 million tonnes at the end of August compared with 4.125 million tonnes a month earlier.

The largest fall in stocks so far recorded in the new data series was in January when net stocks dropped by 2.98 million tonnes as exporters rushed to fill orders as the last harvest, that yielded 21.4 million tonnes, came to an end.

Net stocks exclude grain that is sold but not yet delivered.

Harvesting of 2009-10 crop, that could yield as much as 23.5 million tonnes, has just begun in northerly wheat belts, boosting stocks for the new marketing year that began on Oct. 1.

The Australian Bureau of Agricultural and Resource Economics said exports picked up in August, rising 18.5 percent to 1.24 million tonnes with Iraq becoming Australia's biggest wheat customer that month, buying 228,200 tonnes, followed by Indonesia purchasing 186,400 tonnes.

During the first 11 months of the last marketing year ended Sept. 30, 13.59 million tonnes were exported to 28 countries across Asia, Africa, the Middle East and Europe, ABARE said.

Comparative figures for the previous year were not available.

Over the first 11 months of the marketing year, Indonesia was the largest buyer of Australian wheat, importing 2.41 million tonnes, followed by Iran with 1.58 million tonnes.