Aussie grain crops desperately need rain
Grain production in parts of two states in Australia, the world's
third-largest exporter of wheat and canola, may be reduced without rainfall,
said Rabobank Groep.
Crops in northern New South Wales and southern Queensland states may fail
unless rain falls in the next two-to-three weeks, according to Neil Dobbin, head
of rural banking for Australia and New Zealand with the world's largest
agricultural lender. Other areas need rain within six weeks or yields may fall,
Australia's wheat crop is
forecast to rebound to 22.5 million metric tons, more than double last year's
drought affected harvest.
Autumn rains have allowed some of the nation's
grain growers to sow more area to crops this year to benefit from wheat's 74%
rally and a 36% gain in canola. "If they can get a good yield this year, it will
make a hell of a difference,'' Rabobank's Dobbin said.
The 22.5 million
ton wheat estimate of the government's commodity forecaster is realistic should
rain fall soon, he said.
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