Wheat Production Down In Australia

As reported in a Bloomberg article, wheat output in Australia is expected to be 19.5 million metric tons for this year's harvest, compared to an original forecast of 23.7 million metric tons. Dry conditions, including the driest May on record, are being given as the reason for cuts in the estimates. Australia is the third largest exporter of wheat. Many farmers converted acreage to wheat as the price increased over the last year (before correcting). Wheat futures were up slightly in morning trading.