Wheat Production Forecast Down

Wheatbelt among top performers for July

Wheat Production Forecast Down

The latest National Australia Bank (NAB) Rural Commodities Index fell 1.2 per cent in July, driven by weaker livestock prices offsetting some big gains across some grains.

The latest Rural Commodities Wrap shows that on a regional basis, price indicators have diverged between cattle and sheep heavy regions which have seen substantial declines of more than five per cent.

NAB Agribusiness Economist, Phin Ziebell, said the Index for beef had fallen for the third month in a row, down a further six per cent in July.

“On the other hand, cropping districts have seen generally very good results price wise. Western Australia’s wheatbelt, the Mallee, Mid-north and Yorke Peninsula were among the best performers in July.

“Overall, wheat prices in July were up a further 10.8 per cent, after rising 8.2 per cent the previous month. Prices for most coarse grains have seen a strong jump, following wheat amid global concerns combined with domestic supply uncertainty.”

NAB’s wheat production forecast for the 2017-18 crop has now been revised slightly downwards from 23.3 to 22.7 million tonnes, based on rainfall to date.

“Concerns about the state of the winter crop are growing in many parts of the country, with parts of Western Australia, South Australia and New South Wales the worst affected. However, rain over the last week has boosted sentiment somewhat. There is likely to be a premium for domestic wheat in the coming months as livestock producers scramble for feed.”