Market News & Headlines >> Australia Latest to Harvest Huge Wheat Crop
Australia is set to harvest a record large wheat crop thanks largely to ample rains across its east coast crop areas during the growing season, which boosted yields sharply there following three years sub-par crops amid an extended drought.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), the country’s official crop forecaster, on Monday raised its wheat production estimate by more than 16% to 32.64 million metric tons. Production is now seen up 35% from last year’s 24.2 million tons, surpassing the previous record of 29.6 million tons harvested in 2011 by more than 10%. The record production comes despite frost damage to the crop in Western Australia, normally the country’s largest producing and exporting region.
Australia’s bumper crop is the latest in a strong of big crop for major exporting nations, including the U.S. and Russia, and may push the record world wheat carryout expected at the end of 2016/17 even higher.
USDA will likely raise its estimate of Australia’s crop in Friday’s monthly supply/demand update and also up its forecast for that country’s 2016/17 exports, which it currently sees at 20.5 MMT, up 27% from last year.