Drought Hurts Global Wheat Supplies

Posted by: Nate Berg

15 March 2008 - 5:00am

A severe drought in Australia has cut into the country's wheat production -- and pushed prices up all over the world.

"After America, Australia is normally the second largest exporter of grain, and in a good year it would hope to harvest about 25 million tonnes."

"But the country remains in the grip of the worst drought in a century, which is why the 2006 crop yielded only 9.8m tonnes."

"Global wheat stocks are at their lowest levels since 1979, and the ongoing Australian drought is one of the reasons why."

Source: BBC, March 11, 2008

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