Australia exported 46 percent more bulk wheat in October than a year earlier, with new entrants to the market taking advantage of the start of a much larger harvest.

 

The government's new wheat export regulator said on Thursday 400,000 tonnes of bulk wheat had been exported in October, up from 274,497 tonnes a year earlier, with 8 newly licensed exporters participating in the sales.

 

Wheat Exports Australia (WEA) said wheat exported was largely carry over stocks from the last season when AWB Ltd (AWB.AX: Quote, Profile, Research, Stock Buzz) had the sole right to market Australian bulk wheat overseas.

 

It said comparisons with the same month a year before did not provide an accurate guide as AWB sales varied sharply from month to month depending on deals being completed.

 

"The real significance is that we've now got more than one company exporting and more than 400,000 tonnes has gone out in little over a month so the system is working," said Peter Woods, Chief Executive of WEA.

 

WEA licenced 19 exporters under Australia's new wheat exporting arrangements, effective from July 1, which ended AWB's monopoly position that had existed for more than 60 years.

 

AWB lost its monopoly after being found to have broken United Nations sanctions against Iraq by paying $222 million in kickbacks to the former Iraqi government of Saddam Hussein between 1999 and 2003 to secure sales.

 

The increased October shipments come as Australia's 2008/09 wheat harvest moves into top gear. Crop forecasters estimate about 20 million tonnes of wheat will be harvested, up 54 percent on last season's drought impacted 13 million tonnes harvest.

 

WEA said Australian wheat had been delivered to eight countries during the September-October period, including the first bulk shipments under the new export system taking place at the end of September.

 

The industry's deregulation paved the way for new entrants such as U.S. based commodities giant, Cargill Inc [CARG.UL], to gain bulk wheat export licences.

 

Australia also exports smaller quantities of wheat in bags and containers but a spokeswoman for WEA said October data for these shipments was not currently available.

 

In the two months ending October, WEA said more than a quarter of wheat exports, including bag and container shipments, went to Indonesia.

 

South Korea was the next largest customer, taking 16 percent, followed by Sudan buying 15 percent and Egypt 14 percent. New Zealand bought 6 percent, Papua New Guinea 4 percent and Fiji 2 percent.

 

Western Australia's CBH Group this week shipped a 30,000-tonne cargo to Indonesian flour milling group Bogasari, the first to be sourced from Western Australia's 2008/09 harvest.

 

The Australian government last week forecast Western Australia would produce 7.8 million tonnes of wheat, up 1.7 million tonnes on the previous season.