Australian Wheat Output Cut To 20.8MMT - NAB

The National Australia Bank Ltd. today slashed it's Australian 2008 wheat output estimate to 20.8mmt from it's 24.3mmt forecast in June.

The forecast is towards the low end of trade expectations and 1.7mmt below ABARE's recent estimate of 22.5mmt.

Still, output is seen well above 2007's drought-ravaged 13mmt crop.

ASX January wheat closed A$6 higher overnight at A$300/tonne.

NAB also forecast barley production in 2008 at 7.4mmt against ABARE's 7.8mmt and an actual 5.9mmt in 2007.

Canola production was forecast at 1.3mmt compared with ABARE's 1.65mmt and an actual 1.07mmt last year.