Australia set for largest annual wheat exports

Monthly wheat exports jumped 16 per cent from 2.36 million tonnes in May to 2.8mt in June as earlier supply chain problems eased lifting Australia's October to June exports to 20.8mt.

With three months remaining in the 2021-22 marketing year, Australia is comfortably on track to post its largest annual wheat exports. The United States Department of Agriculture is currently forecasting Australia's 2021-22 wheat exports at 27.5mts, some 15pc above the previous record set last season.

China has been, by far, Australia's largest wheat export destination this season. Government export data showed that 711,000 tonnes of wheat was shipped to China in June. This more than doubled monthly shipments to Indonesia, the second largest destination for the month. Around 4.9mt of wheat have been shipped to China so far in the 2021-22 marketing year, three times more than the same time last year.

Larger wheat exports to the Middle East and Africa have also helped to bolster the national export pace. Sudan, Kenya, Iran, and Iraq have all emerged as destinations in recent months.

Sorghum exports have also picked up after a slow, rain affected start to the export year. A further 273,000t of sorghum was shipped in June, following a similar volume in May. China has also been the largest sorghum export destination.

Queensland farmers enjoyed some welcome rain last week. Falls were variable, ranging from 5 to 25 millimetres across the south western cropping areas and the Darling Downs. Miles received 6mm, Jandowae 16mm and Dalby 15mm. Farmers are anxious for further follow-up rain after a dry July to keep the promising crops well-watered ahead of the warmer temperatures in spring.

NSW received widespread rain last week, although falls were much heavier. Some parts of the state's cropping areas recorded close to 100mm for the week, resulting in isolated flooding and crop inundation.

Local grain markets remain soft in both the old and new crop months as traders respond to declines in overseas futures values. For the most part, grain buyers appear comfortably covered for their needs for the next four to six weeks and are in no hurry to chase sellers.