It is expected that wheat production in Australia could fall below 19 million tons, compared with 21.2 million tons June forecast, the Australian Bureau of agricultural Economics and natural resources (ABARES). The situation is especially difficult on the East coast of the country.

At the end of the 2018/19 season, Australia has fallen to 7th place in the ranking of exporting countries (3rd place in the 2016/17 season, when wheat production reached a record 35.1 million tons).

However, while Australia suffers from lower production of wheat, world production in the season 2019/20 year may rise to a record high of 768,1 million tons, the USDA forecast. In particular, will benefit from black sea countries.

"Asian refiners do not consider Australia a major supplier of wheat, as it was a few years ago," - said the representative of one of the leading flour milling companies in Southeast Asia. "Prices on black sea wheat is an attractive and constantly improving quality. Lack of Australian market is not a serious problem ".

Australian wheat of the highest grade traded at a price of $250/ton C&F Southeast Asia. Meanwhile, the black sea wheat of similar quality costs about 225 $/ton C&F.

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