(Bloomberg) -- Persistent dry weather in parts of Western Australia has raised concerns over the outlook for the upcoming season as crop planting continues, according to a monthly industry report.

Farmers in the northern and eastern growing regions will pull back on intended plantings and leave some paddocks to fallow if they don’t get rain over the next two weeks, according to the Grains Industry of Western Australia. The state is the nation’s biggest grain producer.

Australia is a major exporter of grains from wheat to barley and any impact to production could underpin some tightening of the market and boost prices. Wheat futures recently rallied to the highest level since August due to dry weather, while war continues to threaten supplies elsewhere.

“Soil moisture profiles are historically very dry this year and the light falls of rain are either being sucked up like a sponge or are evaporating before it soaks in,” the Western Australian industry group said.

Most regions in Western Australia have sown over 50% of their intended area, but a lack of rain in coming weeks could reduce the planting scope by several hundred thousand hectares, the association said. However, that could swing the other way by a similar margin if there is decent rainfall.

The association trimmed its estimate for planted wheat in 2024 to 4.7 million hectares, compared with an April forecast of 4.96 million. The projection for overall planted grains was cut to about 8.5 million, from 8.6 million.

Other estimates for planted crop area:

• Barley: 1.47 million hectares
• Canola: 1.7 million hectares

Estimate from April report:

• Barley: 1.46 million hectares
• Canola: 1.57 million hectares

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