Wheat production in Australia is down by 36 percent from a year ago because of drought, which will limit sales from one of the world’s largest wheat exporters in the year ahead, said the USDA’s World Agricultural Production report. The monthly report said Brazil had harvested its smallest wheat crop in 10 years, 4.9 million tonnes, after a season of erratic and unfavorable weather that included excessive rain at planting time, summer dryness, and late-season frost.
Nonetheless, the USDA said world wheat production would be a record 755.2 million tonnes in 2017/18, an increase of 3.2 million tonnes from its November estimate and marginally larger than the 753.6 million tonnes harvested in the 2016/17 season. The USDA said crops in Canada and Russia were larger than estimated a month ago, which boosted the world total to a new peak.
The Australian wheat crop was estimated at 21.5 million tonnes, compared with 33.5 million tonnes in 2016/17. “Persistent dryness and the sub-soil moisture deficit in a major portion of Australia’s winter wheat region contributed to an estimated 17 percent drop in wheat yield,” said the USDA. “Precipitation was well below average since sowing operations commenced in May.”