December 22, 2010

Half of Australia's 2010/11 wheat crop of feed grade quality

Rain damage will result in about half of Australia's estimated 24-million-tonne wheat crop being classified as livestock feed or downgraded milling wheat for 2010, National Australia Bank Ltd. estimated Tuesday (Dec 21).

Australia's wheat crop usually comprises mostly milling grade wheat with a tiny percentage of feed grade.

Most of the rain damage to crops has occurred in New South Wales state, with the total cost of the overall downgrade for the crop year ending March 31 approaching AUD1 billion (US$1 billion), the bank reported in a monthly review of farm commodities.

"More of an unknown at this stage is the extent of crop loss that has occurred as a result of flooding. Estimates range markedly and true loss will only become apparent in the weeks to come," it said.