SYDNEY, Sept 06 (The Wall Street Journal): Australia forecast another bumper wheat crop following above-average rainfall on its east coast, but supply-chain bottlenecks could limit its ability to export more and ease concerns about global food security.
Russia's invasion of Ukraine pushed up wheat prices to record levels earlier this year and led some big producers, including India, to ban exports. Higher wheat prices have added to inflationary pressures, threatening the global economic recovery from the Covid-19 pandemic.
Global wheat buyers are depending on other producers to make up for shortfalls from Ukraine, despite its recent agreement with Russia to resume grain exports via the Black Sea. Australia, one of the world's largest wheat exporters, has benefited from two consecutive La Niña weather events that brought greater rainfall and improved growing conditions.
On Tuesday, Australia's agricultural commodities forecaster projected a wheat harvest of 32.2 million metric tons in the 12 months through June 2023, which would be the country's second-largest on record, and 30 per cent above the 10-year average. Harvests have recovered significantly since 2019-2020 when the country's eastern states experienced a severe drought that culminated in deadly wildfires.
Higher wheat output and elevated prices of agricultural commodities are driving a revenue windfall for Australian farmers. The Australian Bureau of Agricultural and Resource Economics and Sciences, which generates crop forecasts for the government, estimated the annual value of agricultural exports would rise by about 5 per cent to a record 70.3 billion Australian dollars, equivalent to around $48.4 billion.
Australia's bumper wheat crop faces export constraints
FE Team | Published: September 06, 2022 22:56:30
Australia's bumper wheat crop faces export constraints
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