Dry weather to delay wheat planting in Australia

The dry weather forecast this week for most of Australia's grain-growing regions may deny farmers a planting window for winter crops such as wheat, with more rain needed before they can go ahead with early plantings.

 

The country's weather bureau is forecasting generally dry conditions until Friday, (Apr 23). The planting window is narrowing, but Malcolm Bartholomaeus, market analyst for Callum Downs Commodity News, believes that it's not too late for early plantings – provided farmers get good rain next week and the week after. Planting can extend through June but as time moves on, chances of good yields slim down.

 

Current forecasts for 2010/11 by the National Crop Centre is around 22 million to 22.5 million tonnes, but are subject to change as planting decisions are made and the season moves on. Last season, 21.7 million tonnes were harvested. This year, about 15 million tonnes could be exported until September.

 

Farmers could plant fewer acres with wheat and opt for crops offering higher returns such as rapeseed and cotton. Australia's wheat prices are about AU$ 100 (US$ 92) per tonne less than a year ago with the port price for Australian Prime White (APW) at Fremantle port currently quoted at AU$ 209 (US$ 193.98) per tonne.

 

"We're optimistic about the season but not about the prices as there are very large world wheat stocks and lots of competition, especially from Black Sea wheat, Russia, Ukraine and Kazakhstan – they're the price setters," said Ian Desborough, a spokesman for wheat exporter AWB Ltd.