Flooding in eastern Australia worsens wheat harvest

Flooding in eastern Australia has reduced the quality of the wheat crop of one of the world's largest exporters, leading to a global shortage of high-quality grain used to make bread and ramen noodles.

Such events could have a negative impact on the international wheat market, which had hoped that Australia's record crop would help reduce stocks and lower food costs. And while the harvest is likely to be rich, heavy rains and flooding could turn much of the crop into grain fit only for animal feed.

Concerns about grain quality are evident in the rising cost of eastern milling wheat relative to feed varieties, which hit an all-time high this month. According to James Maxwell, senior manager of Australian Crop Forecasters, a shortage of flour-quality grain on the east coast this year means demand for lower-protein general-purpose wheat is rising.