Australia: Australian wheat output under threat as dry weather set to linger - PressFrom - Australia
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AustraliaAustralian wheat output under threat as dry weather set to linger

06:00  13 june  2019
06:00  13 june  2019 Source:   reuters.com

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Australia 's east coast will experience dry weather for at least the next three months, the “East coast farmers have largely written off wheat crops this year, but the issue could be the situation in the west Production of wheat from the world’s fourth-largest exporter is already expected to hit a decade low

Australia 's east coast will experience dry weather for at least the next three months, the country's meteorological bureau said on Thursday, intensifying a drought that has wilted crops and left farmers struggling to stay in business. In its latest three-month outlook, the Bureau of Meteorology.

Australian wheat output under threat as dry weather set to linger© Reuters/DAVID GRAY Harvesting machinery can be seen behind a wheat crop in a paddock located on the outskirts of the South Australian town of Jamestown Dry weather will persist across Australia until at least the end of September, the country's weather bureau said on Thursday, in a forecast that threatens to further lower wheat production in the world's No. 4 exporter.

There is just a 30% chance that Australia will record average rainfall between July 1 and Sep 30, Australia's Bureau of Meteorology (BOM) said.

Temperatures will also be above average over the three-month period, BOM said, pegging the chance of exceeding average maximum heat levels at 80%.

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Australia - the world’s fourth-largest wheat exporter - will begin planting wheat crops in the next few The record production provided a timely boost for the economy. Buoyed by record wheat output Economists already expect the benefit of agriculture to wane, but the threat of an El Nino threatens to

Australia ’s east coast churns out the country’s high protein wheat , meaning output losses would limit exportable supplies of the more desirable grain. While the rains poses a threat to Australia ’s grain farmers, the moisture will be welcomed by cattle ranchers. Farmers in Australia - the world’s No. 4

The forecast is bad news for Australian wheat growers who are facing a third year of drought conditions along the country's east coast.

Australia's chief commodity forecaster earlier this week lowered its forecast for wheat production by more than 11% as it warned crops on the country's east coast will be in desperate need of rains in September.

It pegged production of the country's largest rural export at 21.2 million tonnes, down from its previous estimate in March of 23.9 million tonnes and 14% below the 10-year average.

Lower production may help support benchmark global wheat prices but it threatens to be a drag on the Australian economy.

Wheat is the country's most lucrative rural export from an agricultural sector worth about A$50 billion.

With Australia on course to have only a small exportable crop, traditional buyers of its wheat such as Indonesian and Japanese millers will be forced to look to alternative markets such as Russia at a time when prices are rallying.

(Reporting by Colin Packham; editing by Richard Pullin)

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