CBH Group has become the second Australian grain handler in a week to cut hopes for receivals, warning that dry weather has cut hopes for the harvest in the country's biggest wheat producing state.

CBH cut by 800,000 tonnes, to 11m tonnes, its forecast for grain deliveries from farmers, citing a "dry finish" to the season in many parts of the state, which produces about 40% of Australia's wheat.

The revision comes a week after Graincorp, CBH's eastern Australian rival, cut its forecast for receivals to 7m-8.5m tonnes, from 8m-9m tonnes, because of "drought conditions" in New South Wales, the country's second-ranked grain state.

Dry weather continues to be a concern for Australian farmers, especially in the face of the continuing threat of El Nino weather conditions, which typically bring dry weather to the country.

Nonetheless, the country is on course for a significantly better crop than in the drought-struck 2006-07 and 2007-08 years.

Lower quality

CBH said that the dry weather had also hurt the quality of the crop.

Allan Walker, CBH manager in the Kiwana East zone, said: "The dry finish saw yields come in lower than expected and the quality of the crop was quite disappointing."

In Albany East, manager Richard Simonaitis said: "We're down around 300,000 tonnes this harvest, with quality and yields for coast grains being quite disappointing."

CBH said it had received 10.6m tonnes of grain so far, with the Western Australian harvest set to wrap up within the next two weeks, three weeks ahead of last year despite rainfall in early October delaying the start.

CBH handles effectively all the Western Australian grain crop.

Statisticians at Australia's official commodities bureau Abare earlier this month pegged the state's winter crop at 12.1m tonnes, including the likes of canola and lupins.