Australian ports gear up for a busy grain export year

Australian ports are expecting grain exports to gain momentum despite summer grain harvests being almost complete on the back of record receivals across the country, strong global demand and plentiful Australian supplies.

Fremantle port in Western Australia (WA) is gearing up for a busy grain export year after WA grain aggregator CBH noted record receivals in the 2022-23 harvest season between October and February at 21.8mn t thus far, already exceeding the previous year's record of 21.3mn t. The Fremantle port received 123 grain ships in the last financial year and exported a total of 651,000t. Bulk grain exports in 2021-22 made up 56pc of the port of Fremantle's outer harbour major exports, with the main destinations being China, Japan, South Korea, Saudi Arabia, Indonesia and Yemen.

Exports out of the port of Newcastle in New South Wales (NSW) performed strongly in 2022 despite multiple flood events impacting access and creating disruptions across the supply chain. Total wheat exports from the port totalled 2.7mn t in 2022, compared with 3.04mn t in 2021. Total tonnes of exported cargoes equalled 145mn t for 2022, down by 9.9pc from 161mn t in 2021.

Smaller ports such as Bulk Ports Mackay in Queensland have utilised mobile shiploaders to strengthen export capabilities so their supplies can keep up with global demand. Mackay exported 298,682t of grains in the 2021-22 harvest season, compared with the 60,233t in the previous year. Grain exports through Mackay have not been this high since the 2016-17 harvest season when 228,638t was exported.

The values of wheat and barley exports are forecast to increase to record highs of A$13.9bn ($9.8bn) and A$3.7bn in 2022-23, respectively, according to the Department of Agriculture, Fisheries and Forestry 2023 crop outlook. This is driven by ample export supply, strong world demand and high prices.

Favourable weather conditions created above-average yields for crops in most of Australia's producing regions, which led the US Department of Agriculture's Foreign Agricultural Service to raise its forecast for Australia's wheat production in the 2022-2023 marketing year between October and September to a new all-time high of 37mn t.

The international market will continue to look to Australia to fill voids in global grain supply as poor weather conditions across the US and Canada have decreased the amount of grain available for export. Slow ship inspections at the Black Sea grain corridor and ongoing general volatility are also reducing grain exports via the corridor.

By Jessica Clarke