Inclement weather has damaged about half of the crop of wheat crop in the third-largest producing state of Australia, Bloomberg reports.
Heavy rains flattened crops in Victoria, Australia and reduced the quality to feed, according to a grains project manager at the Primary Industries Department, contributing to the 44 percent rise in wheat futures thus far this year. March-delivery wheat rose 0.3 percent to $7.78 per bushel before 6 p.m. in Melbourne.
"The big issue now will be the logistics of harvesting and not getting the machines bogged," Chris Sounness told Bloomberg by phone, noting farmers began gathering crops in anticipation of the more pleasant weather forecast for the next seven days.
Additional wheat-producing countries have suffered as well. Drought delivered a harsh blow to Russia's harvest. Canada and parts of Europe have endured heavy rains.
Heavy rain in Australia has delayed harvesting by four to five weeks, which might push up the season into February, according to a spokesman for GrainCorp of Sydney who also noted some of the grain is usable.
"We are still getting some decent quality grain," David Ginns told Bloomberg. "A lot of the rain that we have had has been heavy in some areas, but not so heavy in others."
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