Estimated FAS USDA, the farmers of Australia will gather on 13 million tons less wheat this season, compared to last year's record. The gross yield is projected at 22 million tons.

From April to may rainfall in producing regions was 40% below the long-term average. June was one of the driest months in the history of observations – rainfall was 62% below the long-term performance. This has led to a sharp increase in wheat prices, despite its high inventories at the beginning of the season (+59% on the previous season – to 8.9 mln tonnes). Harvesting wheat from the new harvest will take place from August to January.

Export in 2017/18 season is estimated at 18 million tonnes to 24 million tonnes last season. Low prices for last season enabled Australia to increase its presence in the markets of Philippines, India and Iraq. In this season, the traders will feel strong competition from the black sea region, especially in the segment of feed wheat.

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