Urgent need for rain
Record dry spell takes toll on grain growers
MANY of Australia’s productive agricultural regions have been hit by the the driest June on record.
Large parts of southern Queensland and New South Wales didn’t get any rain in June, while grain growing regions in South Australia and Victoria received only 1-5mm.
Rabobank’s Agribusiness Monthly report says wheat yields have been downgraded in cropping regions in Western Australia, South Australia and northern NSW.
The West Australian wheatbelt received just 5-15mm of rainfall in June, “too little, too late” for some crops in the north.
“Yield downgrades for parts of the Western Australian, South Australian and northern NSW cropping zones are being factored in and even areas with previously excellent prospects such as the Riverina of NSW now face moisture deficits,” Rabobank said. “Rain is required urgently across the country’s key grain growing regions, mostly in WA, where some crops are starting to die from lack of moisture.”
Rabobank said Australian wheat prices had followed US wheat prices higher, but had mostly improved as expectations for the new harvest were reduced.
Dry conditions are also affecting the beef sector.
If forecasts for dry weather from July to September eventuate in south-eastern Australia, more cattle are expected to come onto the market as farmers reduce stock, which may see prices ease.
But a current cattle shortage is expected to protect the market from a sudden, significant price drop. Rabobank said total beef exports for June are on par with 2016.
Live export numbers for the year to May are down 35 per cent.
Meanwhile, the strength of the Australian dollar against the currencies of other “new world” wine producers is hindering returns from wine exports.