Posted 11/8/2012 14:21 (#2686009) Subject: Where is the Wheat Going to Come From?
North Central Oregon
It seems everywhere I looked today, news sites were reporting bad news for wheat production. These are all from news stories posted today.
Russia's output of wheat being lowered by another million tons. They are tapping into grain reserves to keep food inflation in check and news that, "Southern Russia, the main winter wheat area, has grown very dry from a stable, warm ridge of high pressure. Russia wheat producers have the same issues with severe drought as their counterparts in the US Great Plains. Fields are dry through a very deep layer, due to drought persisting summer into the fall."
Ukraine, after production of Wheat falls by one third, and having record breaking exports may be shutting off exports this month (Old News) and are experiencing poor conditions to start the next crop.
Czech Republic grain harvest fell by 21%.
Argentina and Brazil having a wet harvest that is badly affecting the wheat crop.
Australia suffering from a drought worn crop.
The US having it's poorest start to a winter wheat crop in at least 26 years.
European winter wheat planting is slow because of "adverse weather conditions."
UK Wheat Production at 13.31 million tons is the result of the lowest wheat yield since 1988.
India has good reserves but Wheat rotting and unable to effectively export the surplus because of poor grain handling infrastructure.
China set for increased wheat imports. "Rabobank estimated China’s 2012/13 wheat imports at 3.6 MMT (an 8 year high) and more than double the USDA's forecast of 1.5 MMT. They have already imported more than 1 MMT in Q1 of the season." Seems to give credibility to the stories that China overstated their wheat crop production by 10 million tons.
Something has got to give here or the world is in big trouble. Almost sounds Biblical to me.