According to traders and analysts, widespread rains in Australia’s eastern grain-producing states are likely to have an adverse effect on the quality of the wheat crop, which is expected to be harvested at the end of the year.
Australian wheat quality declines are likely to increase worries about the world’s food supplies, as the world is headed for the tightest grain stocks in years as the Russia-Ukraine war restricts exports and unfavourable weather lowers production.
Authorities warned that another powerful weather system might strike numerous inland districts, bringing further downpours and causing flash flooding. Heavy rains eased over Australia’s east on Monday, providing locals who had grown sick of flooding with a small respite.
The Bureau of Meteorology said that starting late on Wednesday, widespread rains of up to 100 mm (4 inches), or nearly a fifth of Australia’s annual normal, could fall over two days in northern Victoria state, southern New South Wales (NSW), and northern Tasmania.
The quality of about 6-7 million tonnes of the NSW wheat crop is in jeopardy, according to Ole Houe, director of advisory services at Sydney’s IKON Commodities.
We might end up with a lot of wheat of the feed quality on the east coast.
Russian Wheat Prices rise
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 dealer from Singapore remarked that importers “may have to seek at alternative origins for supply of high protein wheat.”
“North American suppliers will face increased pressure to ship high-quality milling wheat.” On Monday, the market was supported by the escalation of hostilities between Russia and Ukraine, which caused global wheat prices to soar to a three-month high.
