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 World's hungry for our record grain crop 

World's hungry for our record grain crop

03 Oct, 2011 07:45 AM
ABOUT a metre above the well-watered soils of Western Australia, a record grain crop is swaying in the breeze.

Higher than average rainfall in September will help production in the state exceed 9 million tons for only the third time in history, reports The Australian Financial Review.

Wheat farmers are happy. Well-timed rains mean high-protein grains which will be sold into a world market with a shortage of basic crops.

"A couple of fronts have come through that have finished things off to a T," WA Farmers Federation president Mike Norton said.

Very healthy production around Geraldton would lead to a bottleneck at that port if growers did not make early sales, he said.

Other elements in the supply chain would run smoothly.

"Our handling systems over here, while we do complain a bit at times, are head and shoulders above what you have over east," he said.

The national wheat harvest is looking good, if not as healthy as WA's, according to Cargill Australia general manager Mitch Morison.

"The fundamental picture is still pretty bright, which should underpin grain prices for the next eight months."

Mr Morison believes Australia will be one of only a few grain powerhouses this year because Europe's crop is slender and the corn market in the US is suffering a shortage.

"The corn crop is expected to be a lot smaller than initially forecast so wheat is being put into the feed ration instead of exported for milling purposes," he said.

The only hitch is getting the crops out of the country.

"There is enough capacity at the ports but the biggest issue is we can't get the bloody stuff to the ports," Mr Morison said.

"A big part of it is the inefficient rail industry in Australia. Our infrastructure is so outdated," he said, pointing to rail wagons in parts of the state that reach their top safe speed at 10 km/h.

"The NSW government is not going to spend any money on upgrading rail and hasn't done for the last 25 years."

ANZ senior agricultural economist Paul Deane, in research released on Friday, said WA exports were so strong they would fill demand in the traditional markets of Japan, Korea and south-east Asia. Wheat would have to be sold to "less predictable" markets in China, India the Middle East and North Africa.

Mr Deane argued that North Africa was the hardest market to crack and doing so could discourage planting in the future.

"If WA wheat is forced to price into North Africa at some point in the next 12 months, WA new crop basis could come under pressure."

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Date: Newest first | Oldest first
I am really starting to get sick of these acticles. APW delivered to Premer is $186/t. Do you people ever look at the price before writing this crap about the "world being hungry" for our crops? Please get in touch with what is actually happening.
Posted by Pete, 3/10/2011 8:33:22 AM
I was under the impression that one of the prime motivations for deregulating the export wheat industry was all the investment in infrastructure the new players would bring with them.

They've all got office space but I guess infrastructure investment doesn't extend to rail tracks, locos and wagons or port handling facilities. Bring some Canadians over and show'em how good we are at exporting wheat these days!

Posted by mark2, 3/10/2011 2:43:36 PM
I agree with Pete.

It's been a difficult season in much of NSW (west and north), early crops looked good but have largely been frost affected, later crops have picked up due to last minute rain but won't reach their full potential.

An ordinary season at best for many, with very ordinary prices, and keeping in mind a wet summer is forecast - it isn't in the silo yet. Good to see WA getting some potentially good yields though.

Posted by Bluey, 3/10/2011 4:48:43 PM
I agree with pete. I think marketers tell us the price of grain is good so we think we are getting a good price. I'm on my 50th harvest this year and I think the the price is also crap. Iron ore & coal @$300 a tonne & grain @ $250
Posted by Dick, 4/10/2011 8:52:13 AM
and your point is, Dick?
Posted by Bushie Bill, 4/10/2011 4:46:53 PM
Because of the emasculation of our national pool, grain as an production option is now well out of the loop of profitability with livestock pipping it at every post, the only people still growing all grain are the compromised and those that can’t count.
Posted by Bent over, 4/10/2011 7:44:45 PM

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