September 21, 2011

Australian record wheat export to limit prices

Market analysts foresee that Australia will have a record wheat export in the coming year, thus restricting global prices from rising.

The Australian Bureau of Agricultural and Resource Economics and Sciences estimate that the country will export 20.4 million tonnes in the year starting October 1, up 9.5%from last year.

Production was forecast at 26.2 million tonnes, unchanged from its previous estimate and just short of the record 26.3 million tonnes in 2010-2011, the bureau said.

"Consistent monthly winter rainfall of between 25 and 100 millimetres was received across Western Australia's cropping regions, which is a stark turnaround from last season's dry conditions," said Terry Sheales, acting deputy executive director at the bureau.

"South Australia, Victoria and southern New South Wales recorded average August rainfall and crops in these regions look promising," Sheales added.

Meanwhile, the International Grains Council (IGC) expect animal feed demand for corn in the 2011/12 season to account for 69% or 489 million tonnes of total feed demand.

The ICG forecasts 8% growth in animal feed demand for wheat at 124 million tonnes for the forthcoming 2011/12 campaign reflecting the ongoing recovery in Russian and Ukrainian output.