Wheat exports from Australia seen shrinking on drier conditions

Australia, the world’s second-largest wheat exporting country, is likely to see shipments decline from record levels in the coming financial year as production drops because of drier conditions.

Exports will probably fall to 22.5 million tons in 2023-24 from an all-time high of 28 million tons a year earlier, while output is set to decrease to 28.2 million tons from 39.2 million tons, government forecaster Abares said. The figure for the harvest just completed is up from 36.6 million tons estimated in December. Planting for the coming crop only gets under way in April.

Supplies of the food staple from Australia have helped to cap global prices in the past year after Russia’s invasion of Ukraine choked shipments and sent the grain to a record. Production in Australia was boosted by plentiful rains from the La Nina weather event, and a return to less favorable, drier conditions is expected in the coming months, the agency said in a report.