Australian Wheat Harvest Begins In NSW

Hot and dry conditions have prompted farmers to begin wheat harvesting in New South Wales.

For the first time in an unregulated market growers are not compelled to sell their wheat to the Australian Wheat Board for export under the single desk scheme. This has prompted a lot of cash-strapped growers to try to sell their wheat all at the same time after two years of drought.

Not surprisingly this is depressing prices. Benchmark ASX January closed Friday A$6 lower at A$271/tonne, A$14 down on the weeks high and A$29 down on the month.

The harvest has yet to begin in Western Australia, the country's largest producing state, where soil conditions are too wet.