Downpours have reduced the quality of Australian wheat

Heavy rains hit cereal crops in Australia, causing a widespread decline in wheat quality. This is reported by Reuters.

Now in Australia, the harvesting campaign is coming to an end. According to the Australian Bureau of Agricultural Resources and Economics (ABARE) forecasts, the gross wheat harvest will rise to 31.9 million tons, which is 23% more than in the previous season and 20% above the average for the last ten years.

Rains have been falling in wheat-growing areas for the past two weeks. Meteorologists do not expect the rains to stop anytime soon.

Four agricultural analysts said between 2.5 million and 5 million tons of milling wheat has gone to feed wheat, representing 8% to 16% of the total crop.

“We’re already hearing that a lot has sprouted,” said an analyst at a major grain trader in Australia, referring to moisture-laden grain. He said other crops such as rapeseed and lentils were also affected, asking not to be named because he was not authorized to speak to the media. The analyst said 3 million tons in New South Wales and 2 million tons of wheat in Victoria were now of forage quality. He estimated the total loss across all crops could reach A$250 million (US$162 million).

Analysts believe some crop damage was avoided due to an early start to this year’s harvesting campaign. High-yielding crops in northern New South Wales and Queensland were safely harvested before rains flooded the southeastern growing regions.

“About (about) 2.5 million tons of wheat is expected to lose quality, mainly due to rain-induced germination,” said Stefan Meyer, head of grain trading at brokerage StoneX in Sydney.

Feed wheat’s share of the total crop (about 11%) is likely to be similar to the average over the past 10 years, brokers at IKON Commodities said.

Australia is one of the world’s largest wheat exporters. Due to untimely rains in Australia, the supply of milling wheat in the world market will be lower than previously expected.

The rains could contribute to a good crop next year, said Rod Baker of Australian Crop Forecasters. “If there’s one positive, it’s that soil moisture will improve and we’re in for at least an average crop next year,” he said.

The Australian Bureau of Meteorology forecast above-average rainfall for most growing regions from December to February.

Tags: Australia, wheat, crop condition