Old Dog, New Tricks Etc

Winter wheat planting is about to get underway in Australia, and early suggestions that planted area might be significantly reduced this season are faltering.

Rabobank recently raised it's 2010/11 wheat production estimate from 20 MMT to 21.8 MMT, falling in line with earlier estimates from ABARE (21.94 MMT) and the National Australia Bank (22.6 MMT).

Australian farmers even more disgruntled with domestic wheat prices that their European or US counterparts, largely thanks to interest rates at 4.25% and the resulting strong Australian dollar.

That has depressed local prices even more than those elsewhere in the world.

Even so, ideas that farmers there would subsequently cut their wheat area seem to be unlikely, judging on comments from the famous Ron Greentree, the county's largest farmer:

"You can't stop," Mr Greentree said. "We are in the business of growing grain and I think a lot of people will be hoping that by the time we harvest, prices have risen."

You might be better off pining your hopes on getting the Ashes back Ron.

Sound familiar?