December 8, 2011

Australian wheat exports to weigh on global wheat prices

Australia's wheat crop will pressure the global wheat prices despite the quality concerns following untimely rains.

The Australian Bureau of Agricultural and Resource Economics and Sciences have pegged wheat production at a record 28.286 million tonnes, up 8% from its September forecast.

That would allow it to export 21.6 million tonnes, again a record amount, which is a 6% upward revision from the September report. Australia recorded 26.3 million tonnes of wheat production in 2010/11, meaning the crop would be 7.6% higher year on year.