The latest crop forecast from Australian Crop Forecasters points to an increase in wheat production of 500,000 tonnes to 24.05 million tonnes, an increase in barley of 145,000t and a 50,000t increase in canola.

It says there are currently good growing conditions for crops in most areas of Queensland, New South Wales and Western Australia, although previously forecast crop production levels for Victoria and South Australia will be reliant on favourable conditions in spring.

Grain Growers Association chairman, John Eastburn, said growers across the eastern seaboard could be cautiously optimistic about the prospects for this year’s winter crop.

"Good rainfall in Queensland has led to production estimates reaching 43pc higher than the five year average, including a 4pc increase in wheat yield," Mr Eastburn said.

"In NSW, a slightly below average rainfall last month means wheat yield estimates have been trimmed in some regions.

"Northern NSW now needs rain, even though subsoil moisture remains quite good. Parts of the south-west Riverina are also very patchy.

"For Victorian farmers, last month’s near average rainfall in Victoria means growers will be anxious for good spring rainfall to ensure forecast average yields are realised."

Mr Eastburn said growers would be holding out for favourable conditions to capitalise on the historically high grain prices in order to account for the increase in input costs.

The ACF update also points to a large post harvest increase in estimates for sorghum production, up from 2.8mt to a record 3.2mt.