The Australian Weather Bureau BOM expected above-average much precipitation, which will increase the agricultural production in the coming three months across the country.
On the East Coast and in the South of the continent is the likelihood of above-average rainfall at 80%, so the BOM. If this should be so, the previous estimate will exceed the wheat harvest and the production of meat, sugar and milk. Wheat is the most important product for the Australian agricultural exports.
In early June, the official estimate on a four-year high for the world's fourth largest wheat exporter has been raised. It was at that time by 25.4 million tons of wheat. Private estimates are now already 5% more.
The impressive figures are likely to put further pressure on global wheat prices. The stock market fell to a three-month low yesterday.
The humid weather conditions could benefit from also milk producers, which are due to low disbursement rates in financial hardship. Last week the milk price was once again reduced to 3% and the farmers get more and more cows to the slaughter. Rain would benefit from the pastures and farmers would have to buy less food.
Lower Australian milk exports already benefited the global prices for dairy products, which have more than halved since 2014 due to weak demand.
