Market Notes – Aussie drought continues

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Published: December 5, 2002

SYDNEY, Australia (Reuters) – Continuing drought is hammering

Australia’s summer crops after devastating its winter output.

The Australian Bureau of Agricultural and Resource Economics further

shaved its forecasts for much- reduced Australian winter crops of

wheat, barley, canola, lupins and other pulses, now being harvested

after one of the worst growing seasons on record.

But savage new cuts to the bureau’s first estimate of the smaller

summer crops show the drought is expected to ravage production into

2003.

“The area sown to summer crops is forecast to drop by 41 percent in

2002-03, with grains production forecast to be down 59 percent to two

million tonnes,” said the bureau’s executive director, Brian Fisher.

The summer sorghum production forecast, which Australian farmers had

hoped might supply enough livestock feed to dampen price rises and

contain grain imports, has been slashed to 855,000 tonnes from 1.85

million tonnes in a September forecast.

After more than seven months of severe drought, the bureau cut the

winter wheat forecast to 9.98 million tonnes. That is down from an

October forecast of 10.13 million.

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