ACCORDING to the most recent Australian Bureau of Statistics (ABS) data, bulk wheat stocks to the end of May are up 27pc on the same time in 2009 on the back of increased production and a sluggish export schedule.
The ABS data, compiled from information gathered in the Grain Handlers Stocks Survey (GHSS), showed there was 11.15 million tonnes held in Australia’s bulk handling network at May 31, 2010, compared to 8.72 in May 2009.
The majority of the wheat is milling grade, with 87.2pc, or 9.73 million tonnes of the 11.15mt milling grades.
The increase in stocks comes entirely due to the milling wheat sector, with feed wheat stocks actually down year on year 27pc, from 1.948mt to 1.421mt.
Most of the wheat is held in the export-focused South Australian and Western Australian systems, with SA holding 2.89mt, compared to 671,000t last year and WA, 4.19mt, up from 3.5mt in 2009.
Victoria also recorded a growth in stocks, up roughly 750,000 tonnes, from 378,000 in 2009 to 1.13mt in 2010.
Bulk wheat stocks in New South Wales and Queensland are comparatively tighter, reflecting lower yields in certain parts of both states and the strong domestic demand, in particular from the feed grain sector.
Commonwealth Bank strategist Luke Matthews believes this trend of year on year increases in stocks may continue, suggesting the possibility of end stocks of over five million tonnes at the end of September, compared to 3.4mt in 2009, primarily on the back of South Australia and a small increase in WA holdings.
Email a friend