October 13, 2008

Australia's 2008 wheat crop forecast seen cut by 20.5 million tonnes

A production forecast for an Australian wheat crop to be harvested by year-end was trimmed Monday to 20.5 million tonnes from 21.0 million tonnes a month ago, said Rabobank Australia.

Production expectations were cut following frost in Western Australia's wheat belt and ongoing dry conditions in Victoria, parts of South Australia and southern New South Wales, Rabobank reported in a monthly agribusiness review.

"Second half October rainfall will play a significant role in final production levels of Australia's winter crops," it said.

Rabobank's projection for the 2008 Australian crop compares with a forecast Friday by the US Department of Agriculture of 21.5 million tonnes, down from 22.0 million tonnes month earlier.