Pilfered this from the daily SMW thread:
SINGAPORE (Reuters) - From Australia to Argentina, erratic weather is slashing wheat crops of the major producers, which is threatening to push up prices to multi-year highs and making it difficult for countries to replenish stocks.
The United States had one of the hottest summers since the Dust Bowl years of the 1930s. The U.S. Agriculture Department has forecast output will fall 14 percent to 1.80 billion bushels, the smallest crop in four years. The USDA expects the drought to push U.S. prices to its highest levels in 10 years.
Meanwhile, Australia's production is expected fall up to 30 percent from last year's 25 million tonnes due to dry weather and Europe also expects a lower wheat crop following a sweltering summer. This, coupled with rain in the final harvest stages, has downgraded a substantial amount of wheat to feed quality.
Canada, also plagued by hot weather, expects its wheat output to fall to 25.9 million tonnes from 26.8 million in 2005. Argentina, which last year produced 12.5 million tonnes of wheat, has repeatedly lowered its forecast due to dry weather but has yet to issue a forecast.
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