May 2, 2008

 

Western Australia's CBH says bumper wheat crop unlikely

 

Imre Mencshelyi, chief executive of logistics concern Cooperative Bulk Handling Ltd., late Thursday (May 1, 2008) downplayed talk of a record production of winter grains including wheat in Western Australia - usually a major source of global traded wheat.

 

He backed an estimate by Tim Collins, CBH's logistics manager, that total production from crops to be planted in the next two months would reach a range of 10 million-15 million tonnes, rather than 16 million-20 million tonnes previously forecasted by some.

 

"You'll probably get a little better than average (season) given the start because it's a better start than last year," Mencshelyi told Dow Jones Newswires.

 

The average annual grain production in the state in the last 10 years has been 10.2 million tonnes, of which wheat typically accounts for about two-thirds and barley about one-fifth.

 

Farmers in the northern and some central growing districts in the state's wheatbelt - which have suffered severe droughts for two consecutive years - have had an encouraging start to the year with several rainfall events, he said. But the usually more reliable southeast Esperance growing region remains dry and needs rain to spur seeding, he added.

 

CBH operates a network of upcountry storages and coastal export terminals in the state.

 

Mencshelyi said exceptional rainfall through the growing season could see the state yield more than 15 million tonnes of grain when crops are harvested in November and December, adding if the rain fails production will be at the lower end of the range or below 10 million tonnes.

 

Total production from winter crops in the state reached 9.7 million tonnes in 2007, of which 6.1 million tonnes were wheat and 2.2 million tonnes barley, according to official figures.

 

A record production was reached in 2003 - after a drought in 2002 - when total state production reached 16.7 million tonnes - including 11.1 million tonnes of wheat and 3.2 million tonnes of barley.

 

Western Australia supplies about 10 percent of globally traded wheat.