A second question has been raised in as many days over Australia's grain crop with a warning that, thanks to dry weather, production in the main growing state will be "below previous expectations".

Western Australian officials warned a "late and patchy start" to the growing season in the state, which is responsible for about 40% of national wheat production, had "contributed to a lower crop yield potential".

For most areas had, the April-to-June period had been among the worst 10% ever for rainfall, with many recording record low precipitation. Conversely, some farms on the southern coast were battling floods.

The state's government said that it "estimates the total grain crop in Western Australia in 2010 will be below previous expectations", while declining to reveal a figure.

'Very, very light crop'

Beancounters at Australia's national crop bureau, Abare, last month forecast winter crop production of 12.1m tonnes, including nearly 8m tonnes of wheat, although CBH Group, the state's main grain handler, has already dropped its hopes.

CBH is forecasting a total winter crop of 8-11mm tonnes, after reporting sowings down 30% in some areas because of the dry conditions.

"This season will be about growers preserving equity in their business," CBH operations general manager Colin Tutt said.

"It will be a very, very light crop."

Mice and locusts 

"Mice have been a significant problem in many districts," the state's government said, adding that "high locust numbers caused some delays to seeding in parts of the Murray Mallee, with significant damage to early sown cereal and canola crop".

While the state's wheat crop was expected to come in only marginally short of Abare's 3.5m-tonne forecast, barley production was forecast to reach only 1.7m tonnes, 15% short of bureau expectations.

Hopes for global production are being revised downwards following dry weather in Russia and northern Europe and a wet spring in Canadian which prevented many farmers from completing sowings.