AusBN – Better-than-expected rainfall in the past month has led forecasters to predict a bumper wheat yield in the coming spring season.
National Australia Bank Ltd (NAB) previously warned that the El Nino weather phase would limit wheat yields to 20 million tonnes or less.
However, with South Australia and New South Wales looking likely to receive more rain than expected, NAB has updated its estimated wheat production to a possible 23 million tonnes.
Agribusiness economist Phin Ziebell wrote in a report: “Australian wheat growers endured a somewhat nervous start to the planting season, with autumn rainfall patchy and below average in many regions.
“Better rainfall in the past month has improved confidence, but challenges remain, compounded by the presence of El Nino.”
El Nino typically brings dry weather to eastern Australia, but the wet weather experienced over the last few weeks suggests that its impact on crop production has been overestimated.