"Now we are in a near-optimum sowing window, giving optimism for a large production season as growers have indicated their intention to sow all available acres this season," he said.

The Australian Bureau of Meteorology was forecasting at least average rainfall in South Australia for the next three months, he added. World wheat and barley supplies were still at significantly low levels, he said. ABB plans to expand into wheat exporting with de-regulation of the Australian industry on July 1.

South Australia produces around 15 percent of Australia's national wheat crop and 30 percent of the national barley crop. Australia is forecast to produce a record or near-record wheat crop of 26-27 million tonnes in 2008/09, although this has been thrown into doubt by dry weather in the main eastern growing state of New South Wales, which missed out on last weekend's rainfall. Last year, drought conditions limited the wheat crop to just 13 million tonnes. The forecast barley crop for 2008/09 is about 9 million tonnes, up from 5.9 million tonnes last season.

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