The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) says it expects a 13% increase in Australian wheat production in 2013-14 to around 25 MMT. The increase reflects improved yields following generally dry growing conditions last season and a 4% increase in planted area. Meanwhile, ABARES expects world wheat trade to increase by 6% in 2013-14, but it expects Australian wheat exports to decline by 5% to around 21 MMT.
"Lower wheat prices combined with assumed stronger economic activity in developing economies is expected to encourage higher purchases of wheat," it states in its report. "A significant rise in exports from some major exporters, particularly the Black Sea region, is expected to more than offset lower exports from Australia, Canada, the European Union and the United States."
Click here for the full Agricultural commodities report from ABARES.