Australia harvests 23% less grain - Exports of the 4th largest exporter fall
The most recent crop estimate of the Australian Department of Agriculture comes on a crop of winter cereals of approx. 29 million t. Two years ago, the result was almost twice as high at 56.7 million tonnes.
Decisive cause was the low rains especially in September. The eastern part of Australia , in particular, was hit hard by the rainfall. In addition, there were frosts in subregions of Southeast, South and East Australia. Above-average rainfall in Oct.2018 came too late to avert the damage.
In some drought-ridden regions, the weak grain stock has been hayed as a livestock feed substitute, some areas such as New South Wales have been grazed or abandoned altogether.
The unfavorable sowing conditions have led to a reduction in cultivation of summer cereals by approx. 18% led. With below-average earning expectations, the summer grain crop should fall by 24% to just 3.1 million t.
On a perennial average, Australia exports approx. two thirds of its harvest. This high export share is not expected for 2018/19 . Of the previous 24 million tonnes of exports, only 17 million tonnes are expected to be available in the current cereal year. This is a price-influencing supply to global supply.
At the same time, insufficient monsoon rains are reported from India .The expectations are based on a future crop deficit. India will become a major grain importer again in 2019
On the Australian Stock Exchange , wheat prices are reacting with a strong price increase. In Chicago , wheat quotation has stabilized well above the 500 ct / bu mark. Also in Paris , the 200 € / t mark is exceeded again.
