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Russian, Ukrainian Wheat Harvest Higher; Australia Estimate Also Higher

The world wheat outlook looks favorable for the time being.
Compiled by staff 
Published: Aug 6, 2008

With world wheat stocks at all-time lows, a good harvest this year is vitally important. According to numbers released Tuesday, the Asian part of the equation is holding up their end.

Russia has harvested 41.8 million tons of wheat from 25% of acres that were planted. That is 8.5 million tons more than the same time last year and yields are just under a ton more per hectare than last season's harvest. The agriculture ministry expects a final harvest around 85 million tons, an increase of three million from 2007.

The Ukraine is also seeing an improved harvest over last year. They have harvested 74% of wheat acres which have produced 31.86 million tons. Although the harvest pace is behind last year, yields are more than 1.35 tons per hectare greater than last year's harvest. The agriculture ministry is predicting a grain harvest more than 10 million tons greater than last year.

Meanwhile in Australia, Rabobank held its estimate of the wheat crop unchanged between 20 and 24 million tons, a significant increase from last season. Australia has suffered through two straight years of very poor harvests due to drought conditions, and because of that had little grain available for export. Although rains in July helped stabilize the crop conditions in Australia, continued rainfall is very necessary and there are some significant risks for the Australian Wheat Belt as the Bureau of Meteorology rainfall outlook is pointing toward some dry conditions for many growing areas. Only time will tell if the Australian crop will rebound this season and help increase global wheat stocks.



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Tagged: Harvest, wheat, Drought

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