Story perspectives

Australia Wheat Harvest Falls 26% as Drought, Conflict Raise Costs

6/2/2026

Summary

Australia Wheat Slumps

Australia’s wheat harvest is projected to fall 26% to 26.7 million tonnes in 2026/27.
Planted wheat area will shrink 12% to 10.9 million hectares, smallest since 2019/20, because very dry weather and higher input costs from the Middle East conflict have raised expenses.
The report warns fighting will keep costs high and may further cut output while rising mouse populations have prompted approval of stronger bait in Western and South Australia.

Summary

Australian Wheat Surge

Wheat futures hit two-year highs in May as U.S. crop shortfalls combine with Australia’s 26.7 million-ton harvest.
Barley area will rise 4% to 5 million hectares but output will fall 15% to 14.1 million tons, while canola acreage will shrink 6% to 3.5 million hectares, cutting harvest 20% to 6.2 million tons.
The Australian Bureau of Meteorology predicts an El Niño and below-median rainfall, while fertilizer shortages linked to the Iran war have raised growers' costs.

1 of 2

Australia Wheat Slumps

Australia’s wheat harvest is projected to fall 26% to 26.7 million tonnes in 2026/27.
Planted wheat area will shrink 12% to 10.9 million hectares, smallest since 2019/20, because very dry weather and higher input costs from the Middle East conflict have raised expenses.
The report warns fighting will keep costs high and may further cut output while rising mouse populations have prompted approval of stronger bait in Western and South Australia.

1 / 2