January 10, 2023

 

Australia to harvest record 42 million tonnes wheat crop

Traders said Australia is expected to harvest a record 42 million tonnes in wheat as production from the final phase of harvest showed higher yields, Hellenic Shipping News reported.

 

Increased Australian wheat production comes amid fierce competition from the Black Sea region, where record-breaking Russian production is keeping the world market well-supplied.

 

Australia is the world's second-largest exporter of wheat.

 

Phin Ziebell, agribusiness economist at National Australia Bank, said Australia are getting monster yields, with Western Australia performing very well.

 

One Sydney-based trader said Western Australia, the nation's largest wheat exporting state, is expected to produce 16 million tonnes of wheat this year as opposed to the 13 million tonnes initially predicted.

 

In the coming months, Australia is expected to ship record volumes. The trader said ports are nearly completely booked for shipments of wheat in March and April, with buyers considering shipments in May.

 

Wheat production, the nation's main grain crop, was estimated by the Australian Bureau of Agricultural and Resource Economics (ABARES) in December to be 36.6 million tonnes in the 12 months leading up to June 30, 2023.

 

The stronger yields, however, were likely caused by the higher rainfall, which led to the development of average or below-average milling wheat rather than higher protein grades for human consumption.

 

In Sydney, a second trader said some of the lower grade milling wheat might substitute feed wheat in animal rations.

 

End of 2022 flooding and excessive rain in Australia's east coast had an adverse effect on the quality of the wheat crop.

 

Traders said Australian Premium White wheat costs between US$320 and US$325 per tonne, Australian Standard Wheat is offered at US$300 per tonne, and Australian Feed Quality Wheat is quoted at around US$290 per tonne on a free-on-board basis.

 

-      Hellenic Shipping News