10/26/06 AWB cuts wheat crop estimate

Farm and Ranch October 26, 2006 In a short two sentence news release this week, the Australian Wheat Board announced it had reduced its estimate of Australian wheat production from 12 to 15 million metric tons down to nine to 11 million tons. Australia has been suffering a drought and AWB Managing Director Gordon Davis said the worsening weather conditions across most of the wheat belt has resulted in a reduction in the area to be harvested. Harvest normally gets underway down under in November. The Australian Bureau of Agricultural and Resource Economics, which hadn't been scheduled to release a new wheat crop update until December, says it will put out an update this Friday due to the deterioration of the crop. It had last pegged Australian wheat production at 16.4 million tons. USDA's last estimate of the Australian wheat crop was 11 million metric tons in its October supply and demand report. The drought in Australia is taking a toll on more than crops. A mental health group there reports a farmer suicide every four days. The past six months have seen severe drought but USDA meteorologist Harlan Shannon says some areas of Australia have been experiencing drought ever since 2002. Producers down under may not soon see any relief either as an El Nino is forming which usually means hot, dry weather for Australia. Shannon: "It is not going to be good for Australian farmers, at least not historically it hasn't been. So if it does continue to intensify the road ahead doesn't look too good." I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.