West Australia May Produce Less Wheat Than Forecast

By Madelene Pearson

July 8 (Bloomberg) -- Western Australia, the nation's biggest grain grower, may produce less wheat and canola than previously forecast because of dry weather in June, the government said.

Wheat output may be 6.4 million metric tons, the state's department of agriculture and food said in an e-mailed report today. That compares to last month's forecast of 6.73 million tons. Canola production may be 16 percent lower than previously forecast at 501,320 tons, it said.

Most of the state's agricultural regions had below-average rainfall last month, the department said. Rain is critical to bolster yields ahead of the harvest starting about October in Australia, the world's sixth-largest wheat exporter.

``Hopes for a bumper state crop were dashed during June with only light rainfall events being recovered,'' the department said in the report. ``Most areas are looking for early July rainfall to consolidate the crop that has been planted.''

The state's total production of all grains may be about 10 million tons, the department said. It last month estimated output at 10 million to 12 million tons.

To contact the reporter on this story: Madelene Pearson in Perth on mpearson1@bloomberg.net