Australia lowered its outlook for wheat production after dry conditions curbed yields in eastern growing regions in the world’s fourth-biggest exporter.
Output may total 23.2 million metric tons in 2014-2015 from 24.2 million tons forecast in September, the Australian Bureau of Agricultural and Resource Economics and Sciences said in a report. Production was 27 million tons a year earlier, it said. Harvesting began in October.
Wheat climbed to a five-month high yesterday, extending two months of gains, on concern that freezing temperatures from the U.S. to Russia may curb record worldwide output. Disappointing rain in Australia’s winter and spring across most grain regions, combined with reports of frost damage, is weighing on yields, National Australia Bank Ltd. said Nov. 25.