Milling wheat weakens as Australian harvest falls to 5-year low

<p>Milling wheat futures are lower as Australia’s harvest looks set to disappoint.</p>

Milling wheat futures have weakened in trading today (October 23rd) following news Australian yields have fallen.

Wheat production in the nation – which is the world's second-largest shipper of the cereal – is set to decline by 28 per cent to the lowest level in five years, Bloomberg reports.

This would mean the harvest misses government estimates after dry weather damaged crops.

The harvest will total 21.2 million tonnes in the 2012-13 marketing year, according to a median estimate from two traders and four analysts compiled by the news agency.

Last month, a similar survey expected 23.25 million tonnes, while an official forecast anticipated 22.5 million tonnes.

In 2011, Australian farmers harvested a record crop weighting 29.5 million tonnes.

On the Euronext LIFFE Futures index, milling wheat futures slipped 0.1 per cent to €262.75 per metric tonne, while feed wheat futures were stable at £206.25 per metric tonne.

Learn all about CFD trading strategies and the Dow Jones at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.