Australia's wheat forecast likely seen edging up

Estimates of Australia's 2009/10 wheat crop are expected to nudge higher in coming weeks as favourable weather has lifted crop prospects in Western Australia and the country's southern wheat belts ahead of harvest. Australian Crop Forecasters said on Friday it was likely to raise its estimate next week beyond its current forecast of 22 million tonnes, largely as a result of an increased estimate for Western Australia, the country's top grain-exporting state.
"Conditions are pretty good over there," said ACF's Melbourne-based analyst Gavin Warburton. "There were a lot of crops planted and the outlook for rainfall is pretty good as well." This week, Western Australia's state government estimated that the state could harvest between 9 million and 10.5 million tonnes of wheat, compared with 8.9 million tonnes in 2008/09, of which more than 90 percent was destined for export markets. Warburton said the harvest in the country's second-largest grain-producing state.