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Wheat Harvest in Australia is Seen Rising as Acreage Expands

As the global wheat harvest contracts by 1.8%, wheat production in Australia, the world’s fifth biggest exporter, will increase on expanded acreage and yield improvements, according to the country’s commodity forecaster, the Australian Bureau of Agricultural & Resource Economics & Sciences.

Increased planting and improved yields should positively impact Australian output in 2015/16. Farmers may plant 13.89 million hectares (34.3 million acres) – up 0.6% from the year before, and yields in eastern Australia should rebound from below average performance the prior season. If this happens, Australian wheat output for 2015/16 may reach 24.4 million tons, up from 23.6 million tons a year earlier, and exports may rise to 17.95 million tons for the year starting July 1, up from 16.9 million tons for the prior year.

Global wheat inventories at the end of the 2014/15 season will reach their highest level in 30 years, according to the International Grains Council, however challenges to new crop supply will likely support prices going into the fourth quarter according to Rabobank International. Global wheat output may fall to 707 million tons for 2015/16, down from 720 million tons a year earlier, due to a drop in yields, despite increased acreage.

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