SYDNEY Nov 22 Wheat gathered in central New
South Wales contains less protein than expected, traders said,
further tightening supplies of top quality wheat from Australia,
the world's second-largest exporter of the grain.
Stocks of high-protein wheat were already under pressure as
harvests in northern New South Wales and Queensland, the states
that produce top quality hard wheat, have also shown reduced
Flour milled from high-protein wheat is used to produce food
such as high protein breads and is often exported to Asia to
"We are seeing a lot of low protein wheat and barley," said
Chris Kochanski, general manager at Southern Ag Grain.
"It's certainly a lower protein year than most expected and
early indications are it will be a lower than average protein
Global wheat stocks have tightened in recent months on
expectations of smaller crops in key producer Argentina, dry
weather in the United States and fears of export curbs by Russia
Chicago Board of Trade wheat has climbed close to 1
percent this week and more than 35 percent since mid-June.
Lower than average protein levels are another blow to
Australia's overall wheat output, already set to be well down on
last year's record crop after dry weather in Western Australia,
the largest wheat producing state, stunted yields.
However, CBH Group said indications from harvests across
Western Australia suggest all grain production in the state is
likely to surpass 9 million tonnes, the upper end of their
forecasts, with wheat expected to account for approximately 6
Meanwhile, heavy rains have hit New South Wales and
Queensland in recent days, but farmers said crop quality has
largely been unaffected.
The Australian Bureau of Meteorology in its seasonal outlook
forecast unseasonably wet weather for the summer across northern
New South Wales and Western Australia, areas that analysts said
would likely have completed harvesting, minimising the impact on
(Reporting by Colin Packham; Editing by Joseph Radford)