The Australian Bureau of Agricultural and Resource Economics (ABARE) forecasts total commodity exports to rise 26 percent in 2011.

The expected increase will be equivalent to $215 billion. Based on ABARE's quarterly review of the commodity markets, production is increasing rapidly from both the resource industry and from rural Australia.

Mining and energy production is expected to rise 12 percent next year. Farm production is expected to follow suit with an 8.1 percent increase.

Production increases are expected to raise exports. ABARE predicts Australia to be exporting 437 million tonnes of iron ore in 2011. The expected export volume will be 10 percent more than this year and a 41.4 percent increase from the level shipped in 2008.

The agriculture guardian also predicts exports of steel-making coal to be 25 percent more than 2008 figures. Thermal coal exports, likewise, are expected to be 13 percent higher.

This year, major advanced economies in Europe, North America, and Asia have surprisingly increased their steel production by more than 20 percent. The production volume led to a strong lift in demand for steel-making commodities.

The production for steel is expected to increase by five to 10 percent next year as demand in China and other Asian markets is also expected to stay strong.