You are on page 1of 2

Special One Grain Commodity Market Update

26/03/10

Australia Harvest Wheat Acreage


16.0
14.0
Million hectares

12.0
10.0
8.0
6.0
4.0
2.0
0.0

Last week, the U.S. attaché released the latest report on Australia wheat, noting “Area planted to wheat in CY (calendar
year) 2010/11 is forecast at 13.0 million hectares, down six percent on the record 13.8 million hectares planted in the
previous year. This would still represent the fifth largest area sown on record.
Poor prices account for most of the forecast decline in area planted. Despite this fall however, a 13.0 million hectare
wheat crop remains well above the ten‐year average of 12.5 million hectares.

Post's forecast for planted area remains well below ABARE's forecast for 13.75 million hectares planted to wheat in
2010/11. Post believes that a turnaround in the decline of sheep numbers, low wheat prices and a need for growers to
rotate land out of wheat production and into break crops (following successive years of high plantings) will place
significant downward pressure on the area planted to wheat in CY 2010. Post acknowledges that recent rainfall has
placed some upside to planting, which is due to commence in April and May, however recent rains have largely arrived
too early to provide a direct boost to planted area.”

ATA Notes: Long way to go with planting yet to begin, but possibility of ample supply in 10/11 remains intact despite
potential reduction in acreage. Above normal rainfall has been seen in key areas of southern New South Wales during
the first 3 week of March, which will help replenish soil moisture. In contrast, Western Australia has been a bit dry.
Working under the assumption of Australia remaining a strong competitor in the world export market for the near‐ and
intermediate term.

Advance Trading Australia | Special One Grain 1


GENERAL ADVICE WARNING

Please note that any advice given by ADVANCE staff is deemed to be GENERAL advice, as the information or advice given does not take into account your particular objectives, financial situation or needs.
Therefore at all times you should consider the appropriateness of the advice before you act further.

ATA Disclaimer: The market commentary is prepared by an external source believed to be reliable. Advance Trading Australia cannot and does not warrant the accuracy, completeness, timeliness, non-
infringement, merchantability or fitness for a particular purpose of any information contained in the market commentary. Nothing in the market commentary should be regarded as trading advice of any kind
whatsoever. This data is provided for information purposes only and is not intended to be used for specific trading strategies without consulting Advance Trading Australia. All information is based upon
data that is believed to be reliable, but its accuracy is not guaranteed.
Copyright 2010 Advance Trading Australia. 1 Wentworth St Wagga Wagga NSW 2650. Reproduction in any form without the expressed written consent of Advance Trading Australia is strictly forbidden.
This data is provided for information purposes only and is not intended to be used for specific trading strategies without consulting Advance Trading Australia. No guarantee of any kind is implied or
possible where projections of future conditions are attempted. Past results are no indication of future performance. All information is based upon data that is believed to be reliable, but it accuracy is not
guaranteed.

Advance Trading Australia | Special One Grain 2