by Naveen Thukrali
SINGAPORE (Reuters) – Australia is gearing up for a third year of nearly record wheat production in 2022, with a boost to good weather in its grain belt, easing concerns about tight global inventories.
Farmers in Australia, which emerged as the world’s second-largest wheat exporter in 2021/22, have almost completed wheat sowing on 14.45 million hectares (35.7 million acres) this year, an all-time record. Enhanced by rising prices and ideal development conditions. As per estimates by broker IKON Commodities.
He said that the area under wheat sown last year was around 14 million hectares.
While it is still too early to estimate the total size of the 2022-23 crop, which will be harvested later in the year, analysts and traders have started estimating total production at around 30-35 million tonnes, not far from record. 36 million tonnes, up from 30 million tonnes from the 2021-22 harvest.
“Are we seeing a harvest of over 30 million tonnes for the third year in a row? I think we have a good chance,” said Finn Zibel, an agribusiness economist at National Australia Bank in Melbourne.
“Farmers have cash solutions and the weather is really working for them.”
In the last 10 years, the country’s wheat production has averaged 24.8 million tonnes per year, according to data from the Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES).
Russia’s invasion of Ukraine earlier this year has slashed world wheat supplies, cut shipments from one of the main exporting regions, soared grain prices and raised fears of a global food crisis.
India’s recent decision to impose restrictions on exports and adverse weather to the United States has raised concerns about the availability of food grains.