Portugal Colonial - Australia says wheat crop set to plunge

A major world wheat exporter, Australia's harvest this season is set to plunge by 26 percent from last year to 26.7 million tonnes, according to the agriculture department's quarterly assessment.

Australian wheat is grown in winter, which has just started in the southern hemisphere, and most of it is exported to Asia and the Middle East.

The forecast wheat crop is 23 percent below the five-year average and eight percent below the 10-year average, the government report said.

Farmers were expected to cut the total area planted with wheat by 12 percent, it said, citing lower profitability compared to other crops and "very dry" conditions in northern regions.

Winter crops of all types in Australia have been hit by the disruption to the global supply of liquid fuels and fertilisers, it said.

"If the Middle East conflict continues, the cost of inputs is likely to remain elevated for longer which could weigh on production," the report warned.

It noted reports of surging mouse populations in parts of Western Australia and South Australia.

"An emergency permit for double-strength mouse baits has been conditionally approved by Australia's chemical regulator with growers actively baiting to control numbers."

E.Raimundo--PC