November 27, 2009

Australia's 2009-10 wheat crop cut 8.7 percent to 21 million tonnes

A production forecast for an Australian wheat crop now being harvested has been cut 8.7 percent to around 21 million tonnes from 23 million tonnes in October, National Australia Bank reported Friday (November 27).

Estimates of the size of the crop are now more certain with harvest underway, according to the bank.

Yields in many areas are falling below expectations, the bank reported in a monthly commodities farm review.

Frosts in late September appear to have had a significant influence on grain development in parts of southern and central New South Wales, while extremely hot temperatures in Victoria and South Australia have also resulted in a downward revision to yield estimates in those areas, according to the bank.

The bank's latest forecast is in line with other recent industry estimates.

If the estimate is achieved, production this crop year will be down from the 21.4 million tonnes produced last crop year ended March 31, 2009, about two thirds of which was exported.