Most South Australian grain growers expect stable conditions for the coming year despite low crop yields in the 2018/19 season, a new survey says.
The state recorded a 5.3 million tonnes grain harvest this year, almost half the amount harvested two years ago, leaving wheat stocks at their lowest in 10 years.
But despite the figures, which came amid drought conditions across much of Australia, the latest Rabobank rural confidence survey shows grower confidence is on the rise.
While the percentage of grain growers with a positive outlook remained similar to last quarter at 32 per cent, the number with a negative view dropped to 13 per cent, down from 61 per cent.
The survey found a 51 per cent majority expected stable conditions for the year ahead.
Rabobank South Australia manager Roger Matthews said while the 2018/19 season produced a limited crop, those grain growers who did harvest decent yields would have been buoyed by solid grain prices.
"The significant dry conditions seen in much of the east coast has meant the continuance of low feed stocks and greatly reduced sheep and beef herds," he said.
"Producers here have been able to take advantage of the flow-on effect of this, which has seen domestic crop and livestock prices well above the global averages."
Mr Matthews said the low supply meant it was likely prices would remain above average throughout 2019 until the next crop was harvested.
