Australia wheat prospects boosted by forecast rain

Australia's chances of boosting high protein wheat output have improved after the country's weather bureau on Wednesday forecast rain this weekend across parched regions which produce high quality wheat. The promise of rain comes as buyers' interest in Australian wheat has resumed because of tight global supplies of high-quality milling grains after weather-related setbacks in North America and Europe.
The weather bureau forecast moderate rain for the northern region of New South Wales and southern Queensland states where much of the country's higher protein wheat is produced. The area has missed out on crop boosting rain since the start of July, raising fears of crop failures. "There would be some late winter crops (including wheat) up in the region that would benefit if we do get the rain forecast," said Luke Mathews, an agricultural commodity strategist at Commonwealth Bank of Australia.
Australia, one of the world's key wheat exporters, had a record 26.3 million tonne harvest in 2010/11. Analysts expect Australia's exports for the marketing year to September 30 to approach the record 19.2 million tonnes shipped overseas in 1996/97.
A wet harvest in 2010/11 downgraded much of the crop to general purpose or feed grade but a voracious appetite for livestock feed in Asia, an absence of Black Sea supplies because of drought and high corn prices increased demand for lower quality Australian wheat. Hopes are rising that the weather will be kinder when harvesting moves into full swing in November although spring rain is needed.
"There's plenty of potential in the crop but everyday without rain it gets less and less," said Bruce Schwartz, who in May and June planted 1,000 hectares of high protein Australian Prime Hard (APW) wheat on his farm, about 800 km (497 miles) north-west of Sydney.
While there was adequate subsoil moisture when crops were planted, a lack of winter rain left top soils parched in the north-eastern grain belt, where Schwartz's property is located, causing crops to struggle. Further south crops are in better shape, boosted by drenching rains last week.