Record Australia wheat exports seen on bumper crop, strong global demand

A second consecutive record wheat crop, strong global demand, and reduced competition are set to propel Australia’s wheat exports to record volumes, the USDA said in its latest report of world agriculture, making it the third-largest exporter, eclipsing the United States and Canada, which both have smaller crops, tighter stocks, and high prices.

After three years of drought, Australia benefited from improved precipitation in 2020/21 and 2021/22 with near-record yields, resulting in this year’s crop estimated at a record 34.0 million tons. Despite large volumes, the good precipitation throughout the growing season led to lower protein levels in some regions, and untimely rains at harvest in eastern Australia have raised concerns about quality, the USDA said.

It said with high-protein wheat scarce amid dismal U.S. and Canadian crops, some importers are scrambling to purchase what is needed for bread and pasta. With a large crop and relatively robust beginning stocks, Australia
will be able to supply its core Asian markets with both milling and feed-quality wheat.

“However, due to expected quality issues, a significant share of Australia wheat exports may be low protein,” the USDA warned, adding that strong global demand for wheat has been a key factor sustaining Australia exports.

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