Wheat production in Australia will increase as acreage expands and yields recover, helping the country to boost shipments while the global harvest contracts, according to the nation’s agricultural commodities forecaster.
Output in the fifth-biggest exporter may total 24.4 million metric tons in 2015-2016 from 23.6 million tons a year earlier, the Australian Bureau of Agricultural & Resource Economics & Sciences said in a report, giving the first estimate for the crop to be planted from next month. Exports may rise to 17.95 million tons in the year starting July 1 from 16.9 million tons, the bureau said. Global output will drop 1.8 percent, it said.
Wheat lost 15 percent this year, extending a back-to-back annual slump, as global supplies expanded. Record global grain output will boost inventories at the end of 2014-2015 to the highest in about 30 years, the International Grains Council estimated. While the ample stockpiles will cap rallies in coming months, possible challenges to new-crop supply may support prices through the fourth quarter, Rabobank International said.
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