July 13, 2011

Average wheat harvest for Australia: analysts

Australia's wheat production may slide this harvest as yields return to average levels after last season's bumper crop, according to new research by agricultural lending specialist Rabobank.

Rabobank said wheat output in Australia could slide more than 3% to 25.25 million tonnes in the current financial year, compared with 26.1 million tonnes last year.

The Australian crop may help ease a worldwide shortage caused by droughts in the US and Europe that have driven wheat prices 16% higher over the past year, contributing to record global food costs in February.

Consistent rainfall is needed in Western Australia, which is forecast to be the biggest wheat producer in 2011-12, after recent wet conditions boosted crop prospects, the report said.

Damage from mice in eastern states may cut production, it said.

Total grain production might be between nine and 11 million tonnes according to Max Johnson, manager of grain operations with the CBH Group, Western Australia's largest grain handler.