SYDNEY, May 26 (Xinhua) -- Australia is set to plant a reduced winter crop in 2026/27 as mixed weather conditions and "significantly-higher farm input costs" weigh on growers, a report said on Monday.
Australia's winter cropping area will reach 23.1 million hectares for the season, down 8 percent on last year and 4.3 percent below the five-year average, according to the annual outlook by Rabobank, an agribusiness financial service provider.
The decline is forecast to come at the expense of wheat, with the country's wheat planting estimated to fall 20.4 percent on last year to 9.8 million hectares, while plantings of barley, canola and pulses are expected to increase due to relatively stronger returns, the report said.
Rabobank said the season is likely to be shaped by an elevated risk of El Nino, pointing to lower rainfall and above-average temperatures, which could increase yield variability.
Higher global fertilizer and diesel prices linked to the Middle East conflict are also lifting production costs and prompting Australian growers to scale back or shift to lower-input crops, said report author RaboResearch senior grains and oilseeds analyst Vitor Pistoia.
Pistoia said rising input costs will likely lower grain production, while high diesel prices may reduce export supplies as some regions prioritize local markets, slowing shipments and supporting international grain prices.
The bank estimates wheat production will drop to 21.3 million tonnes, down 41 percent from last season, while barley and canola output are also expected to decline despite increased planted areas. ■
