Inclement weather pulled down the projection of wheat production from the globe's second-biggest shipper of the grain, Bloomberg reports.
The dry weather to impact Australia follows drought in Russia and the U.S., all of which cut into the world's supply of wheat, according to the Australian Bureau of Agricultural and Resource Economics and Sciences. Production for 2012-2013 is slated to be 24.1 million metric tons, which is more than 6 percent lower than the 25.7 million tons projected this past March. That also amounts to the lowest level since the 2009-2010 season.
"The Abares number reflects the dryness that we've had recently," agribusiness economist Michael Creed with National Australia Bank told Bloomberg. "We've seen a downgrade in global wheat stocks and there might, in turn, be a rising premium on milling-quality wheat … It certainly does provide a bullish outlook for prices."
At 2:59 p.m. on Wednesday, wheat futures dropped 0.08 percent, a 0.005 cent slip to $6.155 per bushel.
CBS News reports winter wheat production from Colorado is being reduced this year by U.S. agriculture officials by 5 percent from the early May projection. The new forecast is for the production of nearly 87.8 million bushels.