September 11, 2008

Rabobank Australia Thursday (September 11) forecast production from the wheat crop to be harvested in coming months at around 21 million tonnes, soaring by about 60 percent on-year.

However, Rabobank warned that the season remains "very much in the balance" after drought slashed production in 2007 to 13 million tonnes and in 2006 to 11 million tonnes.

Although most cropping regions in Australia received some rainfall in late August, the falls in recent months have been significantly below average, threatening production, despite a near high record area planted this year, Rabobank Australia reported in a monthly review.

"While it remains too early to downgrade national production expectations below 20 million tonnes, the dry conditions in recent months have increased the dependence on an ideal spring for the wheat crop this season," it said.