December 8, 2010

Australia's winter grain crop still predicted to rise amid monsoon

Grain crops across eastern Australia and Western Australia are predicted to rise 22% despite downpour damage and drought, respectively, the federal government's commodity forecaster stated Tuesday (Dec 7).

According to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), it is expecting a 43.2 million tonnes grain crop this year.

Wheat production in 2010/11 is forecast to be a record 26.8 million tonnes compared with 21.9 million tonnes in 2009-10.

Barley production is forecast to reach 9.8 million tonnes, 24% higher than 2009/10 and canola production is forecast to rise 7% to two million tonnes in 2010/11.

The most significant rise in production is expected in New South Wales, where winter crop production is forecast to more than double to 17.1 million tonnes, despite flooding and widespread rain damage.

ABARES acting executive director Paul Morris said many cropping regions in eastern Australia have had ideal growing conditions that boosted crop yields to record levels.

"However, untimely heavy rainfall around harvest time has significantly lowered crop quality in Queensland and many parts of New South Wales," Morris said in a statement on Tuesday (Dec 7).

"Quality issues reported include lower wheat protein levels, a higher proportion of feed barley and sprouted grain."

In contrast to other states in Australia, wheat production in the Western Australia is expected to fall by 56% on last year because of drought, with ABARES only expecting a 3.5 million tone harvest.