# Drought sends Australian wheat on a world-beating rally

> Australian wheat rallied 20 percent in July after the country's driest July since 2002 and fifth-warmest on record. Global wheat output is set to fall to a three-year low as drought hits Australia and crop cuts occur in Europe, the Black Sea and Russia.

- Date: 2018-08-02 · published 2018-08-02T12:00:00.000Z
- Category: weather · region Australia · magnitude medium
- Page: https://feedsoft.ai/events/9689-drought-sends-australian-wheat-on-a-world-beating-rally
- Commodities: [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Barley](https://feedsoft.ai/c/BARLEY.md)

## Why it matters

Drought in the largest southern hemisphere exporter and weaker European and Black Sea crops reduce export supplies and support wheat and feed barley prices.

## Read by commodity

- WHEAT: bullish ▲
- BARLEY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WHEAT | 2019-05-16 | [Drought takes toll on Australian grain \| 2019-05-16  \| World Grain](https://feedsoft.ai/events/59057-drought-takes-toll-on-australian-grain-2019-05-16-world-grain.md) | +10.5% | +9.9% |
| WHEAT | 2018-09-11 | [Drought lowers Australian grain forecast \| 2018-09-11  \| World Grain](https://feedsoft.ai/events/62987-drought-lowers-australian-grain-forecast-2018-09-11-world-grain.md) | -7.4% | -7.0% |
| WHEAT | 2017-06-30 | [Wheat futures rally amid worsening drought in the Northern Plains](https://feedsoft.ai/events/6178-wheat-futures-rally-amid-worsening-drought-in-the-northern-plains.md) | +1.3% | -3.7% |
| WHEAT | 2023-06-05 | [Australia sees wheat, barley output dropping by a third next year](https://feedsoft.ai/events/35408-australia-sees-wheat-barley-output-dropping-by-a-third-next-year.md) | -3.9% | +6.8% |
| WHEAT | 2020-02-26 | [Why drought-busting rain depends on the tropical oceans - Grain Central](https://feedsoft.ai/events/54518-why-drought-busting-rain-depends-on-the-tropical-oceans-grain-central.md) | -0.2% | -4.9% |

## Sources

- smh.com.au: https://www.smh.com.au/business/markets/drought-sends-australian-wheat-on-a-world-beating-rally-20180802-p4zv1d.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.