ABARES raises estimate for Australian wheat crop

The recent rainfall has noticeably softened the negative effects of the El Niño phenomenon - which brings dry conditions - on the winter crop in Australia. 

According to ABARES, 25.3 million tons of wheat are set to be harvested, which is 1.7 million tons more than recently forecast and 6.8% more than last year, notes Commerzbank. This ABARES estimate tallies almost exactly with the latest estimate of the US Department of Agriculture. 

ABARES sees downside risks for the summer crop because of El Niño, however. For this reason, the estimate for the Australian cotton crop in 2015/16 was reduced by 10% to 470,000 tons. says Commerzbank.