New Delhi, Thursday September 13, Weather worldwide is expected to bring down wheat production resulting in soaring prices. Major producer and exporter countries are facing erratic weather that would affect wheat production and supply prospects in coming month if not now.
Hot and dry weather in the US this summer has ravaged corn and soybean crops, sending prices soaring but now concerns are rising that the similar weather pattern could hit the global wheat supply.
Australia, where harvesting is set to start in a month, too has revised its production estimate saying rainfall is needed soon to prevent further falls in production. If heat cuts Australian production further, , prices could shoot up $10 a bushel. In Australia, which is expected to provide 16% of the world's wheat exports, it is crunch time. The crop is entering a crucial growing stage leading up to the harvest starting next month.
Due to heat, harvesting in Russia got affected, forcing the country to announce a ban on wheat export from November. The weak monsoon season in India, which has emerged as the leading wheat exporter too as less rain can undercut conditions for planting that starts next month.
If the troubles in weather continue, the risk of soaring food prices come to the fore of global concerns.
Wheat is a staple food around the world and a major source of basic nutrition for the poor, and prior price spikes in recent years contributed to the political unrest.
