Australia bad yet another wheat record

At the beginning of January, it came from western Australia message that a record crop of wheat has been achieved there. This concerns more than 16 million tons. Two weeks later, that news also comes from the east coast. They also harvest record quantities of grain and rapeseed there.

CBH-Group, which stores and markets almost all wheat from the Australian wheatbelt on the west coast, came up with a record early January. Not a huge plus, but more of a mental barrier that was broken. A harvest of more than 16 million tons of wheat is described, compared to an old record of 15,86 tons. Now the east coast follows with also a record.

Warehousing and trading company GrainCorp reports Monday, January 16 that it has received more than 12 million tons of grain. The company's 26 storage locations in the provinces of Queensland, Victoria and New South Wales set an intake record. Half of these locations are in New South Wales (NSW). The largest storage location contains just under 400.000 tons of grain.

Until Australia Day, (the Australian version of King's Day held on January 26), a supply of grains is still expected, which could increase the volume even further. According to Nigel Lotz, warehousing and logistics manager at GrainCorp, NSW and western Victoria show the highest yields after a long dry spell. Wheat and rapeseed in particular are of good quality, whereas in the west the quality was sometimes lacking due to excessive rainfall.

“Planning and resources have been scaled up by 2016 percent to handle this year's crop,” said Lotz. "For the 2017-21 harvest, we have invested XNUMX million Australian dollars in grain storage." The company has now exported more than a million tons to port terminals. According to Lotz, extra capacity has been made available on the rail and road to be able to ship the record harvest. That will remain the case for the next six months.

The Australian record figures are not hurting the wheat futures market, as can be seen from the quotation. Both the Australian wheat quotation - for durum red wheat - and the CBoT quotation are correct.

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