August 8, 2011


Experts cut 800,000 tonnes off Australia's wheat yield



Experts cut 800,000 tonnes off its national wheat crop forecast in Australia due to dry, warm weather in the eastern part.


The bank is now predicting an Australian wheat crop of 23.5 million tonnes, 3% lower than the May estimate of 24.3 million tonnes.


Experts said it had reduced its forecast of the east coast wheat crop by 1.7 million tonnes to 11.5 million tonnes as a result of dry conditions.


About 1.2 million tonnes has been wiped off the May estimate of the New South Wales crop, while Victoria has had 300,000 taken off its harvest estimate.


The bank has estimated the New South Wales wheat crop at 7.1 million tonnes and the Victorian crop at 3.2 million tonnes.


This has been offset by better conditions in Western Australia resulting in lifting the state's forecast by one million tonnes to eight million tonnes.


The South Australian crop has been left unchanged at about four million tonnes.


July rainfall for areas from central western New South Wales through to Queensland had been below average or very much below average.


"And while subsoil moisture profiles remain generally adequate - owing to flooding summer rainfall - crop development is slow and many crops are thin," it said. "Yield penalties are already likely to have occurred in many regions and widespread rainfall is required over the next few weeks to allay fears for further yield losses."


The Australian Bureau of Agricultural and Resource Economics and Sciences will not update its crop estimate until September but in June, it was forecasting a national wheat crop of 26.2 million tonnes.

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