Rabobank Australia released a monthly agricultural review Monday, which predicted wheat production of 15 to 19 million metric tons. They say moisture in the coming weeks will determine the size and quality of the crop.
According to the Australian Department of Agriculture, the wheat crop declined in August due to extremely dry conditions. Although New South Wales and Queensland have received some rain recently, which helped the crop; much of Australia is suffering from above normal temperatures and severe dry conditions.
In a separate forecast for Western Australia, the crop was decreased to 5.1 million tons as of Sept. 1 compared to 5.6 million tons a month ago. That's close to last year's drought stricken harvest of 5 million tons.