The new estimate is 19 percent higher than the 20.61 million tonnes produced last season and not far behind Australia's record wheat crop of 26.1 million tonnes in 2003/04.
It is in line with a forecast by Australia's monopoly wheat exporter, AWB Ltd, for a 2005/06 crop of 23-25 million tonnes.
Australian Wheat Forecasters said higher than average rainfall had produced a 14.2 percent average yield improvement, while the area planted was 3.9 percent greater than last season.
Prospects in Queensland state were for a larger than normal wheat crop for 2005/06, the best for five years. In New South Wales, excellent September rains, one each week, were followed by two heavy October rains.
There were no quality issues in the state, but grain protein would be lower after rain. In Victoria state, good rains had produced enough soil moisture in northern parts of the state for crops to finish. Protein was expected to be lower due to high-expected yields.
South Australia was producing more wheat as growers chose a low-input. Low-risk crop, while in Western Australia, the harvest has started north of Geraldton on a big crop.