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.

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