December 7, 2007

Australia New South Wales wheat crop estimated 1.8 million tonnes

With a harvest of winter crops in Australia's New South Wales nearing completion, the state's Department of Primary Industries Friday estimated wheat output at 1.8 million tonnes, even worse than the 2.1 million tonnes produced from the drought-affected 2006 crop.

Barley output is estimated at 702,000 tonnes, up from an actual 604,000 tonnes last year, the chickpea crop will yield 224,000 tonnes, up from 199,000 tonnes last year and canola production will rise to 42,000 tonnes from 29,000 tonnes previously.

The figures are in line with forecasts issued late November by the government's chief commodities forecaster, the Australian Bureau of Agricultural & Resource Economics.

Low production of wheat, which is down almost 80 percent from expectations in June, means little if any will be exported. The industry expects grain to be imported into the state from elsewhere in Australia to meet demand.

After a severe drought from June through to October, rain now is delaying what remains of the harvest, which is about 80 percent complete, according to the state department's Grains Report.

"Spring conditions were extremely harsh for finishing winter crops across most of the state," it said.

Some northern cropping districts received up to 350 millimeters of rain mid to late November, too late in the growing season to make much difference to overall production levels, it said.

Continuing rain and high humidity will reduce the quality of unharvested crops, it said.

With the relatively small harvest and variable quality, most of the harvested grain has been stored on farm until the completion of harvest and growers determine their marketing options, it said.

The rains are providing a tremendous boost for summer crops and will lead to further sowings, especially sorghum and late sunflowers, but irrigation prospects for summer crops in the state's northern and southern regions remain dismal, it said.

Plantings of summer crops excluding rice are estimated at 253,000 hectares, an increase of 41,000 hectares from a forecast two months ago, compared with the previous harvest of 277,000 hectares.