Drought is set to continue in many parts of Australia during May as the threat of El Nino remains, the Bureau of Meteorology warns in its latest outlook.

While northern Queensland has been hit by two major flooding events, much of the south and east of the country continues to suffer from lack of rainfall.

“For much of Australia, the hot and dry start to the year has continued,” the bureau says. “The outlook suggests warmer than average conditions are likely to persist, with a drier than average end to autumn likely in the east.

“In the south many areas remain exceptionally dry, with most still waiting for the autumn break. In the Mallee region of Victoria little or no rainfall has been recorded in April and less than 25mm has fallen so far this year.

“This means long-term drought continues in many areas. Total rainfall for the past two years over large parts of eastern and southern Australia has been well below average.”

Rural brokers have previously told insuranceNEWS.com.au how clients are cutting back on insurance cover as their income dries up.

The lack of rain has been exacerbated by high temperatures, with Australia experiencing a record-breaking hot start to the year.

“With high temperatures and little rain, lower-level soil moisture remains very much below average in key agricultural regions in Victoria and SA,” the bureau says.

“Water storage levels in south-eastern Australia continue to fall and are much lower than this time last year. Total water storage in the northern Murray Darling basin is now below 9%, which is lower than what we saw during the millennium drought.”

The threat of El Nino continues to loom in the background. The bureau says it remains on “El Nino alert”, meaning there is a 70% chance of the weather system developing this year.

“A short-lived El Nino may develop in the coming months,” its report says.

“If El Nino does develop, it would increase the chances of drier conditions in the east.

“Even if El Nino doesn’t form, it is likely we will see more high pressure systems and hence weaker cold fronts than normal across southern Australia in May and possibly June.”