The August USDA report forecast a 6.63 million tonne drop in global wheat production.
Shipping reports show that more than a quarter of a million tonnes of wheat, barley and lupins will be discharged into Brisbane from June into August.
With conditions tipped to remain dry through spring there is every chance that futures could break through $400/t providing global values a continued support.
Chicago Board of Trade and South Australian wheat prices are the values to watch in the current wheat market.
The wheat market is set to tighten, and remain tighter into 2019, and, in fact, all indications are for the first global wheat market deficit in six years in 2018-19.
If the Western Australian crop falls over and they end up without an exportable surplus, we will have a sustained rally in Australia not seen in many years.
The current wheat price levels in US cents a bushel are now very close to the peak in the market recorded in July last year.
Wheat futures have fared better than their row-crop cousins, currently sitting at only 10pc below the May highs.
The grain price gains are being underpinned by a bullish US Department of Agriculture Report which shows pressure coming onto global wheat supplies.