November 10, 2003

USDA Forecast Australia's Wheat Harvest Increase By 3.1%
 

Australia's wheat harvest forecast was increased 3.1% by the U.S. Department of Agriculture due to bumper crops' projection in Western Australia and South Australia states.

The department's Foreign Agricultural Service pegged production from Australia, the world's second-biggest wheat exporter, at 23.5 million metric tons, 700,000 tons more than its September 30 forecast of 22.8 million tons. A crop that size would be more than double last year's drought-affected harvest, the Washington-based department said in a report on its Web site.

Increased grain production from Australia will boost the nation's wheat exports to compete with the U.S.¡¯ supplies, as said in the report prepared by Andrew Burst in the U.S. embassy in Canberra. Chicago wheat futures prices have jumped by a 10th in the past month.

As stated in the report, the production increase is attributed to better-than- expected yield prospects in the states of Western and South Australia, where bumper wheat crops are forecast. In major growing areas of New South Wales, dry conditions at planting, and now bouts of frost, and hot, windy weather have trimmed expected yields.

It said dry weather has also reduced estimated production in Queensland state.

Wheat for December delivery fell 0.5 cent, or 0.1%, to $3.75 a bushel in after-hours, electronic trading on the Chicago Board of Trade at 1:37 p.m. Sydney time. The futures have jumped 15% this year.