June 15, 2004

 

 

Aussie Wheat Crop To Hit 24 Million Tonnes

 

Australian wheat production will hit 24 million tonnes this season, the United States Foreign Agricultural Service has predicted.

 

In its latest world markets and trade report, the service said Australia was still on course for a 24 million tonne crop - well up on the official forecast by the Australian Bureau of Agricultural and Resource Economics which predicted a 23.2 million tonne crop last week.

 

The service maintained its May prediction of Australian wheat and flour exports in the 2004-05 financial year of 17 million tonnes, which is up 21 per cent on the same period last year.

 

The service expects the European Union to become a net exporter of wheat this coming season, creating extra pressure in markets of interest to Australia such as Egypt.

 

"Domestic prices have fallen considerably in the last few months, making EU exports more competitive," it said.

 

The service revised up its forecast for world wheat production to 537.3 million tonnes, and also increased its forecast for world consumption to 563.2 million tonnes.

 

For rice, it pushed down its forecast for Australian production by 16 per cent to 500,000 tonnes, and cut the expected milled production by 26.6 per cent to 550,000 tonnes.

 

The service pushed up its forecast for Australian exports of coarse grains.

 

Barley production is tipped to climb on the back of better climatic conditions, with exports expected to rise 300,000 tonnes to 4.5 million tonnes.

 

Production of sorghum is expected to fall 300,000 tonnes to 1.9 million tonnes.

 

The service kept steady its forecast on Australian oat exports at 200,000 tonnes.