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Early signs suggest El Niño will bring a normal Australian wheat crop of roughly 25 to 30 million tonnes, ending a run of record harvests. The weather pattern is expected to bring drier and hotter conditions, although soil moisture is currently good across most of the country.
Historically, El Niño years have produced some of the worst eastern Australian droughts.
A smaller Australian crop would reduce export supply after several record years, which supports wheat prices. The effect depends on how dry the coming season turns out.
fastmarkets.comMasha BelikovaFeb 23, 2023After 1,072 past bullish weather events, WHEAT moved a median +0.2% over 5 sessions (55% higher; middle half -1.4% to +2.3%), and +0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
