December 3, 2007

Australian grain stocks post decline in October

Grain stocks held by Australian bulk handling companies and grain traders in October dropped by 11 percent as storages continue to be depleted after an unprecedented two consecutive drought affected winter harvests.

A total of 2.5 million tonnes of grain was reportedly being held in grain storages as of end of October - back 76 percent, or 7.9 million on-year, according to Australian Bureau of Statistics.

Wheat registered the biggest drop with total stocks falling 17 percent, or 288,000 tonnes, to 1.4 million tonnes. The entire decline was for milling wheat, while stocks of wheat for feed and other purposes increased slightly, to 375,000 tonnes. A 66 percent jump in feed barley stocks during October contributed to total barley stocks increasing 8 percent, to 622,700 tonnes.

Stocks of sorghum and other feed grain and pulses also slid to 10 percent during October, to 363,400 tonnes.

Looking forward, recent widespread rain across southern Queensland and northern NSW has boosted the prospects for an improved sorghum crop in the coming season, with prices easing back in response.