August 8, 2011

Australia's June wheat exports, demand decrease

Although Australia's wheat exports and usage rose significantly in contrast to last June, both shipments and consumption were less than the previous month, according to the Australian Bureau of Statistics on Friday (Aug 5).

Dow Jones also stated that consumption and exports each plummeted 20% on month although exports surged 28% on year to 1.46 million tonnes, and domestic use rose 23% on year to 595,400 tonnes, the bureau said in a monthly wheat use and stocks report. National stocks remain 35% above on year levels at 13.37 million tonnes.

Australia produced a record 26.3 million tonnes of wheat in the year ended March 31, 2011, a 21% rise from 21.8 million tonnes the previous year.

Total exports of 14.04 million tonnes in the first nine months of the marketing year ending September 30 marked a 36% rise from 10.31 million tonnes in the same period a year earlier, the bureau said.

Total wheat exported and consumed domestically in the first nine months of the marketing year reached 18.78 million tonnes, up 28% from 14.68 million tonnes in the year-earlier period, it said.

Wheat contracted for export or domestic use at the end of June was five million tonnes, down 6.2% on month but up 3.1% on year.

Of wheat stored on June 30 by bulk handlers, 7.25 million tonnes or 54% was graded as milling use for human consumption, with the balance of 6.11 million tonnes or 46% of the total graded as livestock feed, the bureau reported previously.

In June last year, the proportion of milling wheat stored by bulk grain handlers was 87% with the remainder for feed.

Australia is among the world's top five wheat suppliers. Inventories usually peak around January as the annual harvest winds down, then drop throughout the year.