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Thursday, July 21, 2016

Good Weather Bodes Well for Australia Wheat Production

(Dow Jones) -- Australian wheat production in 2016/17 is forecast by the U.S. Department of Agriculture's attache to reach 26 million metric tons, which is higher than USDA's official estimates, it says in a note. The revision, it adds, is due to significantly more favorable seasonal conditions across virtually all cropping areas. It adds that similarly, barley production in 2016/17 is forecast to increase to nine million metric tons due to considerable rainfall and improving soil moisture. It says that soil moisture in virtually all wheat and barley cropping areas has markedly improved on relatively dry conditions, which prevailed over much of the previous year. "Better seasonal conditions are also positive for Australian summer crops, with a slight decline in production forecast for sorghum while rice is expected to rebound from water-based constraints on production which were evident in 2015/16."