by PressAustralia stands a good chance of surpassing the U.S. in wheat exports
Analysts: Australia expects record wheat harvest
Analysts assessed the balance of power on the agricultural market, and concluded that Australia has every chance to take second place among the largest exporters of wheat. Previously, this position was held by the U.S., but this season, the yields there are lower than they were in the previous period.
Russia, the United States and Ukraine lead the wheat export market, but this may change, as Australia promises a record harvest, which will allow it to get ahead of the competition. The revision of the forecast is due to new data from weather forecasters. According to them, there are favorable weather conditions in Australia, which allows to speak about an increase in the expected yield of wheat to the level of 32.6 million tons.
Grain in Australia is grown in two major states — Western Australia and New South Wales. Here optimum conditions for the ripening of crops and sufficient rainfall are formed.
The weather has a major impact on the grain market. For example, last month the cost of wheat reached a record level for the last 8 years. The reason was reports of drought in the Western regions of Canada, where most of the country’s crop production is concentrated. 
As for Australia, farmers there are getting ready for record harvests. Related industries are also ramping up to serve farmers. The machine-building industry has increased production of tractors, and it is expected that a total of 16 thousand new machines will be sold over the season, which should become a record for the segment. According to Australian vendors, demand for machinery has increased to the point where they have not been able to handle the load. As a result, there were delays in deliveries not only from local manufacturers, but also from industry representatives from the United States, Europe, and Japan.
According to forecasts from ABARES, the gross value of agricultural production of the country in the current marketing year should reach more than 53 billion dollars. This will be the highest value in the history of Australia. 2020 was a very bad year for local farmers. The prolonged drought and subsequent wildfires resulted in the loss of a huge amount of acreage. In addition, the quality of the crop has also deteriorated. However, the current favorable outlook will go some way to compensate for the losses.
The agricultural sector accounts for about 2.5% of the country’s total GDP. It is considered one of Australia’s main export sectors, being the leading supplier of wheat and cotton. Apart from the latter, the main agricultural crops are barley, lupine, rapeseed and oats. Wheat accounts for more than 57% of all exports, barley for 10%, oilseeds for 8%, and pulses for 6%.