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Reuters
Reuters
Business
Colin Packham

Australian weather bureau sees above average rains in boost for wheat growers

SYDNEY (Reuters) - Australia's west coast will experience wetter than average conditions over the next three months, the country's weather bureau said on Friday, in a boost to wheat production in the world's No. 4 largest exporter.

There is a 70 percent chance that Australia's west coast will record more rain than typical between May 1 and July 31, Australia's Bureau of Meteorology said.

Western Australia is the country's largest wheat producing region, typically accounting for more than a third of national output.

The prediction will ease market nerves about the outlook for Australia's wheat season amid a prolonged drought that has sapped soil moisture, prompting some analysts to forecast a third consecutive year of below average production.

"Above average rains would be good for production for Western Australia and national output as a whole," said Angus Thornton, commodity analyst, Profarmer.

Australian farmers are now beginning to sow crops, which would typically take place after heavy rains. Many are set to sow into dry fields, and will rely on favourable weather in the next few weeks.

Australia's chief commodity forecaster in March said wheat production would rise 38 percent to total 23.9 million tonnes this season, although it cautioned that urgent rains were needed.

Australia's wheat production fell to an 11-year low during the 2018/19 season, according to the commodity forecaster.

Wheat is the country's largest rural export, worth an estimated A$5.5 billion ($3.89 billion) last year.

(Reporting by Colin Packham; editing by Richard Pullin)

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