December 22, 2006

East Australian grains harvest totals 2.1 million tonnes

The harvest of winter grains in eastern Australia is almost finished, GrainCorp Ltd. (GNC.AU) said Friday, adding that receivals of all grain into its network of upcountry silos and export terminals totaled just 2.1 million metric tonnes.

The receivals from drought-ravaged winter crops are in line with a forecast of two million to four million for winter and summer crops, which will be harvested in early 2007, it said.

GrainCorp, the dominant storage and handling concern in eastern Australia, received 9.8 million tonnes of winter grains last crop year ended March 31, 2006.

A significant amount of gain remains in warehouses and considerable tonnes are also being stored on farm as growers wait to consider prices and their marketing options in the new year, GrainCorp said in a statement.

Agriculture Minister Peter McGauran has been considering more than 40 applications for bulk wheat export permits from GrainCorp, unlisted Cooperative Bulk Handling Ltd. and other domestic and international trading concerns, covering more than 5 million tonnes of wheat.

AWB has held a long-term government-sanctioned monopoly over Australia's bulk wheat exports but was stripped of its veto overa exports by rivals early December as part of a government response to its role in an Iraqi kickbacks scandal.

The veto power was passed to the agriculture minister for six months, during which time the government pledged to consult with growers about the long-term future of export arrangements.