October 13, 2022


Quality of wheat crop in Australia affected by heavy rains


Traders and analysts said the quality of wheat crop in Australia, scheduled to be harvested at the end of the year, will be affected by widespread rains in the eastern grain producing states, Reuters reported.


Australian wheat quality declines are likely to increase worries about the world's food supplies, as the world is headed for its tightest grain stocks in years as the Russia-Ukraine war restricts exports and unfavourable weather lowers production.


Authorities warned that another intense weather system could hit several inland regions, bringing more downpours and causing flash flooding. Heavy rains eased across Australia's east, providing residents who had grown weary of flooding with a small respite.


The Bureau of Meteorology warned that starting late on Wednesday, widespread rains of up to 100 mm (4 inches), or about a quarter of Australia's annual average, could fall over two days in northern Victoria state, southern New South Wales (NSW), and northern Tasmania.


Ole Houe, director of advisory services at Sydney's IKON Commodities, said the quality of nearly 6-7 million tonnes of the NSW wheat crop is in jeopardy.


As a result of near-perfect weather earlier in the growing season and increased planting, Australia is on track to produce a record amount of wheat for a third consecutive year.


In Australia, wheat is sown in April or May, and harvesting begins in November. The nation is a significant provider of wheat of food quality to consumers in Asia, the Middle East, and Africa.


One trader from Singapore said that importers might have to look at other origins for supply of high protein wheat. North American suppliers will face increased pressure to ship high-quality milling wheat.


-      Reuters

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