Lack of rain hits wheat forecastSeptember 28, 2006WHEAT exporter...

Lack of rain hits wheat forecast
September 28, 2006
WHEAT exporter AWB Ltd has slashed its full year production forecast by between 25 and 33 per cent because of low rainfall in three states.

The company said domestic wheat production for 2006/07 was now forecast at between 12 million and 15 million tonnes, down from 18 million to 20 million.

"Below average rainfall throughout New South Wales, Victoria and South Australia, combined with warmer than average temperatures, strong winds and lack of subsoil moisture, have resulted in the need to reduce the estimate," said managing director Gordon Davis.

Mr Davis said the Western Australian crop had stabilised with recent rainfall, particularly in the Fremantle and Albany zones.

Earlier this month, the federal government's commodities forecaster warned the drought across Australia was expected to slash the country's winter crop production.

In its September crop report, the Australian Bureau of Agricultural and Research Economics forecast winter crop production to plummet 36 per cent to 26 million tonnes in 2006/07.

Output of the major winter crop, wheat, was predicted to slip 35 per cent to nearly 16.4 million tonnes, while barley was set to drop 41 per cent to 5.8 million tonnes.

ABARE said below average rain last summer had taken its toll on farms.

Spring rains would be vital for farmers to meet even the depleted forecasts, with summer production also expected to be down, it said.

AWB shares fell three cents to $3.37 by 1254 AEST.