On Monday, Rabobank Australia cut its production forecast for the Australian wheat crop by half a million metric tons from the 21 million tons it predicted last month. The cut to 20.5 million metric tons compares to last Friday's USDA reduction of the crop estimate from 22 million tons to 21.5 million.
Rabobank cited the dry conditions that continue to linger through much of Victoria, South Australia and New South Wales as the reason for cutting expectations. Frost in the Wheat Belt of Western Australia also contributed to the decision.
As Australia's winter crops enter the final production stages, Rabobank says the amount of precipitation received in the second half of October will be a major factor of the final production level of those crops.