Australia: Grain and Feed Update
Post forecasts Australian 2018/2019 wheat production at 18 million metric tons (MMT) as hot conditions and low rainfall prevail in eastern Australia. Barley production is forecast to decline to 7.8 MMT due to poor seasonal conditions, the same as the official forecast. Sorghum production has been downgraded to 1.6 MMT in 2018/19 in response to very low rainfall and poor soil moisture. Rice production is forecast to decline to 0.4 MMT in 2018/19 due to high water prices. Most of eastern Australia is in a drought, resulting in higher feed grain prices. Seasonal conditions in Western Australia are more favorable and a higher share of exports is expected to be sourced from this state.
