Quality problems are surfacing with some of the Black Sea export region’s spring wheat harvest, say analysts.
The same extreme wet weather that has delayed winter wheat seeding also hit Siberia’s spring wheat during harvest, said Bruce Burnett, the CWB’s weather and crop specialist.
Siberia’s wheat production closely mirrors what takes place in Western Canada, so farmers here can well imagine the damage caused by “hefty rains” that started in mid-August and lasted through most of September.
“That has caused some harvest quality issues,” said Burnett.
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Parts of neighbouring Kazakhstan had similarly miserable harvest conditions.
Winter wheat is the region’s main wheat crop, but spring seeded wheat has significant acreage.
Burnett expects some Black Sea wheat will be downgraded to feed, which means Russian mills will have to find spring wheat from other parts of the country. That will limit the amount available for export.
“It would probably raise prices and stop exports from happening at an unimpeded rate,” he said.
“There will probably be less export competition because of this quality problem as some of it is turned to feed.”
Alex Bassett, broker for Allendale Inc., said the quality problem is good news for North American exporters.
“(Customers) will have to turn somewhere else, and the U.S. and Canada will be the two most likely alternatives,” he said.
