Hot Winds Cut Australian Wheat Crop By A Further 2 Million Tons - Reuters

[hatrack]

PERTH - Australia's wheat crop could be 2 million tonnes lower than even the most pessimistic forecasts after searing winds scorched the country's bread basket this week, Western Australia's agriculture minister told Reuters.

Chicago wheat futures marched to another record high on Wednesday on Australia's gloomy outlook, which adds to the pressure on dwindling world grain supplies. "The hot, windy day this week caused huge damage so we saw a number of crops written down on Monday on the basis of one day's wind in Western Australia," Kim Chance, the state's Minister of Agriculture and Food, said in an interview late on Tuesday. Wheat from Western Australia makes up the bulk of Australia's exports, which mainly go to Asia and the Middle East. Australia is normally the world's second-largest wheat exporter after the United States.

December wheat futures on the Chicago Board of Trade hit a record on Tuesday on concerns about supplies and India's growing appetite for the grain. Prices pushed further into uncharted territory on Wednesday, hitting a record of US$8.35 a bushel, before easing back.

Wheat prices have nearly doubled since April, fuelled by big demand from importers and a range of dire predictions for the crop around the world. Chance predicted Australia would export of 10 to 14 million tonnes this year, more than from the drought-hit crop last year but still well below earlier predictions.

EDIT

http://www.planetark.org/dailynewsstory.cfm/newsid/44175/story.htm

[kestrel91316]

1. Who cares? Only the Little People eat wheat, right?

Let them eat cake.

[GliderGuider]

2. You're a regular Miss Mary Frickin' Sushine today, aintcha?

Ever notice how the bad news comes in waves these days but the good news comes in dribbles?