Australian Wheat, Canola Output Cut

Rabobank Australia has cut it's 2008 wheat and canola production forecasts citing dryness and frost.

Wheat output this year will total 20.5mmt, down half a million tonnes from its last forecast, they say.

A late September frost caused some significant crop damage in Western Australia, as did dryness in parts of NWS, Victoria and Southern Australia, it says.

If realised, this years crop will still be around 7.5mmt more than produced in 2007.

Meanwhile the Australian Oilseeds Federation cut it's forecast for 2008 canola production to 1.51mmt from 1.65mmt. Again, this still shows a significant increase on last season's crop of 1.07mmt.