* Wheat 2012/13 production estimate lifted 0.2 percent from
Dec forecast - ABARES
* Canola production seen up 17 percent from December
* Summer crops wilted by heat wave, livestock producers
forced to source alternatives
(Adds detail, quote)
By Colin Packham
SYDNEY, Feb 12 Australia, the world's
second-largest wheat exporter, raised its production estimate
for the current marketing year by a fraction from its December
estimate, as the crop largely escaped damage from a heat wave
and floods this summer.
The Australian Bureau of Agriculture and Resource Economics
and Sciences (ABARES) forecast wheat production of 22.077
million tonnes for the marketing year ending in August, up 0.2
percent from its December estimate of 22.035 million tonnes.
The broadly unchanged forecast will be welcomed after the
U.S. Department of Agriculture surprised the market by cutting
it forecast for U.S. wheat stocks, adding to worries about a
The stockpile of U.S. wheat at the end of the marketing year
on May 31 will shrink to 691 million bushels, the smallest in
four years and down from its previous forecast for 716 million
bushels, USDA said.
Australia's wheat crop enjoyed favourable weather towards
the end of the growing cycle, but the government's commodity
forecaster said protein levels across the country's east coast
were lower than average.
"We weren't expecting them to change the wheat number too
much," said Luke Mathews, commodities strategist at the
Commonwealth Bank of Australia.
Wheat in Australia is planted from late April and harvested
by the end of December.
Australia's winter crops were helped by rains in the spring,
The commodities forecaster raised its 2012/13 canola
estimate by 17 percent on better-than-expected yields and a
larger planted area.
Canola production was put at 3.089 million tonnes, up from a
December estimate of 2.636 million tonnes.
"We always know canola acreage was very strong, and we had
been hearing anecdotal reports of better-than-expected yields,"
More canola was planted in New South Wales and Western
Australia than was previously expected, while favourable crop
weather across Australia's west coast boosted yields, ABARES
The forecaster also noted the impact of the heat wave which
scorched Australia in January.
While maintaining its forecast for cotton production at
945,000 tonnes, ABARES said summer crop production would fall 13
percent to approximately 4.8 million tonnes as a result of the
record heat in January. The heat has sapped soil moisture vital
for the germination and establishing newly sown crops.
Sorghum is the most significantly affected summer crop,
ABARES said, forecasting 2012/13 production would fall 23
percent to 1.7 million tonnes.
The drop in sorghum output would impact livestock farmers.
Mark Hoskinson, an arable and livestock farmer in New South
Wales, said producers would have to increasingly feed animals
using stored oats or buy low protein wheat grades as a
(Editing by Ed Davies)