Australia’s biggest grain handler GrainCorp Ltd’s silos on the eastern seaboard are seeing record volumes, Australia’s national broadcaster reported Wednesday as farmers continue harvesting a bumper crop.
Australia’s wheat production was forecasted to hit 28.08 million tons during the 2016/17 season, however farmers and analysts have predicted it could be higher.
“Record volumes of grain had already been delivered to 26 silos in southern NSW (New South Wales), where 100,000 tons of grain had been received,” GrainCorp spokesman Nigel Lotz told the Australian Broadcasting Corporation on Wednesday.
“It is a record for the Harden, Cunningar area.”
Australia’s east has already produced 12 million tons of wheat, barley, canola and chickpeas, though some crops in Victoria state have yet to be harvested while Western Australia state is mid-harvest.
Fears were mounting earlier in 2016 that east coast farmers would have yet another dismal season after being forced to dry sow crops.
Productivity fears however were quashed after flooding and prolonged wet conditions across New South Wales, Victoria and Queensland states at the right times to bolster the season.
While bumper production is good news for Australia’s agribusiness, it’s only adding to an already oversupplied global market awash with wheat.
At 11:06 a.m. local time (AEDT), GrainCorp’s shares were 0.73 percent higher at 9.86 Australian dollars (7.26 U.S. dollars), outpacing the broader market. Enditem