News in brief: Hot and dry weather in Australia during September is expected to lead to a further decline in wheat production, causing concern in the global wheat market. Analysts have already reduced their harvest forecasts, and if this dryness continues, it may result in even more crop losses, potentially raising global wheat prices and impacting food prices, especially in import-dependent countries.
Australia’s wheat production is likely to decline further due to hot and dry weather in September, a crucial month for crop development. This could tighten global supplies, as Australia is a major wheat exporter, a Reuters article says.
Analysts have cut their forecasts for Australia’s wheat harvest by at least one million metric tons from the official forecast made earlier this month. They say even more crop losses are likely if the dryness continues.
The hot and dry weather has caused crops to wilt and shrivel, reducing yields. It has also made it difficult for farmers to irrigate their crops.
The decline in Australian wheat production is a major concern for the global wheat market. Australia is the world’s sixth-largest wheat exporter, and it accounts for about 10% of global wheat exports.
If Australian wheat production declines significantly, it could lead to higher global wheat prices. This could further affect food prices because wheat is a major ingredient in many food products. Import reliant countries could suffer the most from this fallout.
The Australian government claims to be monitoring the situation closely and is providing support to farmers who have been affected by the drought. However, it is unclear how much the government can do to mitigate the impact of the drought on wheat production.
