Wheat output in Western Australia, which produces high-quality milling grain, is likely to double to around 9 million tonnes this year following ideal crop weather, boosting prospects of wheat exports from the country in the coming marketing season.
This has narrowed the spread between the nation's west and east coast wheat to A$13 a tonne, down from A$28 last month and A$45 last year when a severe drought hit the region, traders told Reuters at a grains industry conference in Melbourne. In 2010, output in Western Australia, normally the country's top wheat exporter, dropped to 4.7 million tonnes from 8.1 million a year earlier.
Government forecaster the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) last month estimated Western Australia could reap a crop of 8 million tonnes in 2011/12. Some traders said the output could even surpass the 9 million tonne mark if the weather remained favourable. "Nine million is possible or even more if the season turns out to be as expected," said another trader. "It has improved a lot." Western Australia produces prime and noodle varieties of wheat which is supplied to Asia's top importers such as Japan, Indonesia and Malaysia.
But parts of the country's eastern region, which have been dry, grow high protein hard wheat. On the whole, Australia, the world's fourth largest wheat exporter, expects a 26.2 million tonne crop this year, just below a record 26.3 million in 2010/11 ,but quality is seen higher after late-season rain damaged much of last year's crop. Still, the weather bureau said last week Australia's key wheat growing regions face average or below average rainfall in the three months to October,a critical growing period.