By Colin Packham
SYDNEY, Dec 4 (Reuters) - Australia's largest wheat exporter on Friday cut its production forecast from the country's west coast by nearly 4 percent as a result of wind, frost and fire damage.
As the harvest nears completion, CBH Group, a grower-owned bulk grain handler that dominates exports from Western Australia, said it expected the state's output of all grains to reach 12.5 million tonnes, below its October estimate of 13 million tonnes.
CBH Group estimated 60 percent of the state's grain will be wheat, meaning production will total 7.5 million tonnes, down from a previous estimate of 7.8 million tonnes.
"Some areas have experienced heavy losses to wind, hail and fire across the state," said David Capper, general manager of operations.
Wild fires in Western Australia in November burnt out more than 300,000 hectares, prompting traders to warn that Western Australia may lose up to 4 percent of its grain output. urn:newsml:reuters.com:*:nL3N13E1UB
The CBH Group wheat forecast is 1.2 million tonnes, or nearly 14 percent, lower than the official Australian government estimate of 8.7 million tonnes.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) this week lowered its estimate for national wheat production by 5 percent due to the strongest El Nino in nearly 20 years. urn:newsml:reuters.com:*:nL3N13P6J5
CBH Group also said recent unfavourable weather conditions meant that Western Australia's 2015/16 wheat crop has suffered increased quality downgrades. Forecasts of further rains could threaten the remaining crop, it said.
Lower wheat production from Australia, the world's fourth largest exporter, will add some support to global prices Wc1 , which this week hit a 5-1/2 year low on ample global supply.
Western Australia is the country's largest exporting state, typically supplying markets such as Indonesia and Korea.