CANBERRA (Commodity Online): Australia's wheat production is seen under pressure due to the drought in the major wheat growing provinces, said National Australia Bank.

Dry conditions in Australia's top grain state represent the major threat to the potential for the country raising wheat production by some 1million tonnes next season, it said.

The wheat crop in the southern hemisphere's biggest exporter of the grain will hit 22.6m tonnes in 2010-11, an increase of 5% on NAB figures, helped by abundant rains in eastern parts which will allow early sowings.

The threat to the forecast, which is more upbeat than that from other major analysts, was the dry weather which has beset Western Australia, which produces some 40% of the national wheat crop.

Australia