Australian bulk grain exports set to smash records in 2022
Australian bulk grain exports are flagged to smash records in 2022 with an estimated 35 million tonnes — worth more than a staggering $1 billion — expected to leave our shores.
CBH Group’s new rail services agreement with Aurizon Group — inked in August and expected to lift WA’s grain on rail capacity by 30 per cent — was one of several factors contributing to a massive increase in grain exports in coming months identified by IKON Commodities.
In its latest report, the grain brokerage and advisory said new port loading capacity — in the form of mobile loaders — in Victoria and South Australia, and additional rolling stock would boost export throughput at Port Kembla in New South Wales and Kwinana Grains Terminal in Perth.
IKON Commodities adviser consultant Josh Lawrence said the additional throughput capacity, combined with an excellent growing season for many growers across the country, had created the potential for 35m tonnes of bulk grain exports to flow on to the global market in the months ahead.
He said new-season Australian grain was likely to find strong demand overseas after significant reductions to the Canadian and US harvests because of drought and a wet harvest in France.
“Last year was a big year on the east coast and this year we have had a similar season for most of the farmers across NSW,” Mr Lawrence said. “Lifting the national total was really the big production year in WA and that has more than made up for the drop in production in Victoria and South Australia.
“It is a rare case we have where we have a huge production season in Australia that coincides with a shortage in other parts of the world, meaning we have exceptional demand for Australian wheat on to the global market this year.”
WA grain exports have started strongly this grain shipping year, which starts on October 1, with two shipments of 27,000 tonnes and 30,000 tonnes of old-season wheat leaving Albany and Kwinana respectively in the first week of October.
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