Queensland grain farmers are making final preparations for a looming massive winter crop grain harvest.
Larger plantings and above average winter rainfall have southern Queensland growers eyeing off a record large wheat harvest.
Farmers say they are anticipating record high yields on the back of the idyllic crop conditions.
Pre-harvest expectations are that wheat yields of 3 to 4 tonnes will be the norm across the western Darling Downs and south western Queensland.
Some are already saying the upcoming Queensland wheat harvest will top the record large harvest of 2 million tonnes set back in 2008-09.
Other states including NSW and WA are also preparing for huge harvests.
In a rare mix of events, disappointing wheat crops in other parts of the world are keeping local grain prices well supported.
Droughts in Canada and a smaller than expected Russian wheat crop are expected to see strong demand for Australian wheat from overseas buyers.
Last week the Unites States Department of Agriculture cut its forecast for Canada's 2021 wheat harvest by 7.5mt to 24mt.
This would make it the country's smallest harvest in close to a decade, if realised.
Russia's 2021 wheat crop will also be well below early season projections, further tightening global wheat supplies.
Hefty export taxes on Russian wheat and barley have slowed farmer selling, helping to push demand to other countries, like Australia. This was evident in Australia's June wheat export data, when monthly shipments surged to a record high 2.83mt.
Strong export demand seen over the past 10 months is expected to seamlessly continue into the new crop season. Grain exporters are reporting strong demand from overseas buyers for 2021-22 wheat and barley.
Australia is on track to export more than 23mt of wheat and 7mt of barley in the 2020-21 season. Another large national harvest coupled with strong demand from overseas buyers could see this repeated.
Recent weakness in the Australian dollar is also offering support to domestic grain prices. The Australian dollar tumbled by more than two cents to 10-month lows in the past week as the US dollar strengthened.
New crop stockfeed wheat was $5 higher last week at $335 delivered in the Darling Downs. New crop barley was steady at $295.
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