Australia is poised for a second consecutive bumper wheat harvest as farmers plant grain in near-perfect growing conditions, easing some of the global supply concerns, which lifted world prices to multi-year highs last month.
Widespread rains in key growing states ahead of planting in April and May boosted the soil moisture needed for seeds to thrive, although it is still months until the most critical crop developmental period later this year.
“We have to see how the winter weather goes,” said Phin Ziebell, agribusiness economist at National Australia Bank in Melbourne. “As of now, we are looking at above-average crop.”
Looking ahead, Australia’s east coast and south coast are on course for favourable crop weather, according to forecasts from the country’s weather bureau.
There is an 80% chance of a more-than-average rainfall in New South Wales and South Australia over the next three months, Australia’s Bureau of Meteorology said last week.
Australia’s largest wheat-producing state – Western Australia – is expected to record average rainfall. The outlook will boost already strong conditions on both coasts, analysts said.
“Soil moisture in New South Wales is above average, and in some parts it’s at the highest point in 10 years,” Cheryl Kalisch Gordon, grains analyst at Rabobank, said.