Australia cuts agricultural exports forecast

The Australian Bureau of Agriculture and Resource Economics (ABARE) has cut its forecast value of Australia's commodity exports by 10 percent.

ABARE now expects commodity export earnings of AU$192 billion in 2008-09, down from September's forecast of AU$214 billion, due to the global financial crisis.

ABARE spokesperson Jammie Pemn said the forecast is incorporated as companies are cutting down on production due to the global financial crisis and some overseas buyers have requested for delay of shipments.

Wheat exports are forecast to rise 56 percent to US$4.7 billion.

Pemn said seasonal conditions were better this year than last, resulting in a 20 million tonne wheat crop, compared with 13 million tonnes last year.

He said all the major grain producing nations increased their harvest this year that puts a significant downward pressure on world prices.