Rain Puts Aussie Wheat Crops at Risk: May Worsen Global Shortage
Rain puts Aussie wheat crops at risk
Quality issues may worsen global shortage
By Bruce Hextall
January 12, 2011
Australia’s wheat harvest faces further quality downgrades with torrential rains forecast to hit southern wheat crops, threatening to worsen a global shortage of premium-grade grain.
So far, downgrades have been concentrated in Australia’s northeastern grain belts, which have taken the brunt of persistent downpours, but now analysts are worried that southern crops may also be damaged by the wettest summer for decades.
“Whatever is out there will end up as feed grade,” Malcolm Bartholomaeus, market analyst for Callum Downs Commodity News, said on Tuesday.
But he added that a reasonable amount of milling-grade wheat had already been reaped in the south before the rains struck.