According to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) Australian wheat output for the 2012-13 season will reach 22.1 million tons – up from the 22 million tons expected in December. The winter crop in Queensland, New South Wales and south-eastern Australia were completed before the areas were hit with recent floods and bushfires. Summer crops in these areas suffered only minor damage. The worst drought since the 1930’s has left U.S. winter wheat conditions at their worst since 1985. U.S. inventories will be at 691 million bushels at May 31st – 3.5% lower than U.S. Department of Agriculture forecasts in January. ABARES will release its first estimate for production in the 2013-14 season on March 5th. The bureau has forecasted area planted in wheat to be 13.3 million hectares.