According to The Australian Financial Review, Australian farmers are on track to harvest a record winter crop as weather conditions across the country boost production in every single state for the first time in nearly a decade.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has forecast record winter crop production of 46.1 million, the biggest since the monster 2011-12 crop of 45.7 million tonnes.
The ABARES forecast is underpinned by expectations for a record crop in Western Australia, where farmers are expected to produce a whopping 17.1 million tonnes and South Australia, which is tipped to produce 8 million tonnes, up from 7.2 million tonnes last year.
"Seasonal conditions in most cropping regions during winter were very favourable, and crops are generally in very good condition at the beginning of spring," said acting ABARES executive director Peter Gooday.
The bumper crop will lift the fortunes of the nation's grains handlers CBH Group, GrainCorp and Glencore, which collect, store and transport grain crops. It is the first time winter crop production will increase in every single state since 2007-08.
But there is a sting in the tail of the nation's farming success.
A record crop will add to swelling global stocks as farmers in the Black Sea region, the United States, Canada, and India also enjoy good growing conditions.
Rising global production is hurting wheat prices, which are hovering at a decade low.
The Food and Agriculture Organisation of the United Nations (FAO) increased its forecast for 2016-17 global cereal production late last week to nearly 2.56 billion tonnes, about 40 million tonnes more than 2015.
It is forecasting record global wheat production of 741 million.
Victorian grain grower Ross Johns said some farmers would consider storing and holding part of the crop.
Total summer production is forecast to rise by 28 per cent to almost 4.8 million tonnes.
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