Despite winter rainfall across the Australian grains belt being average or below, the timing of the rains has been opportune and crops are in a reasonable position leading into spring, according to ABARE.
ABARE today released its September issue of the Australian Crop Report, which predicts a 35 million tonnes winter grains crop.
"Although conditions have been variable across regions, there is optimism for an improved winter grains harvest in 2008-09," ABARE's executive director Phillip Glyde said.
According to the report, Australia's winter grains production is forecast to be around 35mt in 2008-09, close to 13mt more than the drought affected 2007-08 harvest.
However, this latest winter crop forecast represents a slight downward revision on the 37mt forecast released by ABARE in June 2008.
Mr Glyde emphasised that rainfall throughout the coming spring months is critical for these production forecasts to be realised.
"Of the major winter grains, wheat production is forecast to be 22.5mt in 2008-09, around 5pc below our June 2008 forecast of 23.7mt, but well above the 13mt harvested last year," he said.
Barley and canola production are also forecast to increase in 2008-09 to 7.8mt and 1.6mt respectively.
Total summer crop area is forecast to increase by 6pc to slightly more than 1.1 million hectares in 2008-09.
However, the availability of irrigation water will remain a critical issue for rice and cotton plantings in 2008-09.
Both are forecast to increase in 2008-09 but remain well below historical averages.
"The area sown to grain sorghum is forecast to decrease by 4pc to be around 767 000 hectares in 2008-09," Mr Glyde said.