Australia: Drops in production see regional basis emerge

The hot winds which swept across Australia at a key point in the grain growing season are likely to knock yields around both in the north, where prospects were previously good, and in the south, where crops have struggled all year. While ABARES has come out with a healthy 55 million tonne national crop, up 17 per cent year on year, the hot conditions during late August are expected to have an impact on yields. This was the view of StoneX cash grain broker Stefan Meyer, who said the run of hot and dry winds was reminiscent of the "sukhovey" wind that can strike Russia and its neighbours during the summer. The wind is typified by its high temperature and low relative humidity occurring in the steppes, the semi-deserts and the deserts of Kazakhstan and the Caspian region. "What we have seen over the past few weeks will take the gloss off crops in Queensland, where temperatures were hottest, but while the temperatures were not as severe we're also trimming up production outlooks in ...