Huge wheat harvest coming in Australia could help ease tight market
Australia, one of the world’s largest wheat exporters, is forecast to produce another huge harvest this season as favorable conditions encourage growers to ramp up planting of winter crops to near-record levels.
Wheat production is estimated at 30.3 million tons in 2022-23, or 22% above the 10-year average, according to government forecaster Abares. That would be the fourth largest on record and compares with an all-time high of 36.3 million tons in 2021-22, which Abares estimated in March. The canola crop is seen at 5.6 million tons, the second largest after 6.4 million tons the previous year.
High prices and supportive seasonal conditions are prompting more sowing of wheat and canola, with planted area for wheat rising 1% and for canola expanding 12% to a record, Abares said. The increase comes at the expense of barley in most states, and chickpeas in Queensland and North South Wales.The outlook is more downbeat than some other forecasts, with Rabobank estimating wheat and canola crops at 32.5 million and 5.8 million tons -- figures it said were “conservative” because it was so early in the season.
Still, the prospect of more supply from Australia will be welcome news for global importers, after wheat prices hit a record following Russia’s invasion of Ukraine. The conflict has slashed exports of wheat and corn from the Black Sea -- an area which normally accounts for over 25% of global wheat shipments -- and driven up costs for vital farming inputs, such as fertilizer and diesel.
Source from: Sybilla Gross, Bloomberg. (June 7, 2022). Huge wheat harvest coming in Australia could help ease tight market. The Economic Times. https://economictimes.indiatimes.com/small-biz/trade/exports/insights/huge-wheat-harvest-coming-in-australia-could-help-ease-tight-market/articleshow/92050293.cms