ABARE Cuts Australian Wheat Output Estimate

ABARE has cut its 2008 Australian wheat crop production estimate to 19.9mmt from 22.5mmt last month, citing a lack of rainfall in the south east.

Victoria has been particularly badly affected, with ABARE slashing output there by almost half to 1.4mmt. South Australia and southern New South Wales have also been hit, it said.

Still, overall wheat production is still seen around 7mmt more than in 2007.

In a separate statement the South Australia Department of Agriculture said total grain output in the state would be 4.74mmt, 13% lower than last month's estimate. Wheat production is seen similar to 2007 at 2.34mmt, it said.

In 2007 the state produced 4.88mmt of grain, with wheat output at 2.35mmt.