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Wheat procurement at 1,769 places in Punjab

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Wheat procurement would be done at 1,769 grain markets in Punjab, where necessary arrangements would be made, Punjab Mandi Board chairman Ajmer Singh Lakhowal said on Wednesday.

"All necessary arrangements will be made in a day or two. We target to procure 115 lakh metric tonnes of

wheat this season as compared to 112.33 lakh metric tonnes last year," he said while addressing media persons here, adding that necessary arrangements would also be made to store the produce.

"In Punjab, 80 lakh metric tonnes in covered godowns and 160 lakh MT in open godowns can be stored. The Centre has failed to lift 68 lakh MT of wheat and 46 lakh MT of paddy lying in these godowns," he revealed.

Lakhowal said that the state government had written to the Centre regarding early lifting of foodgrains and that the matter would be resolved very soon.

Lakhowal also said that due to increase in foodgrains production during the last five years, the income of Mandi Board had also doubled. "From this income, 13,065 kilometres of roads were relaid and maintained to ensure smooth travel for farmers to the grain markets," he said.

Meanwhile, Kapurthala deputy commissioner Alaknanda Dayal held a meeting with district officials to review procurement arrangements in different grain markets in the district.

"All arrangements shall be completed in every grain market latest by April 6. Thereafter, I will inspect these places," she said.

Hindustan Times

Good harvest of wheat on cards

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Agriculture experts are expecting a much better yield of wheat this year, thanks to the favourable climate but the cool weather in the month of March has also been a concern as it could delay the harvest as the grains need bright sunny days and warmer nights to ripen.

“Last year, the yield was 4,690 kg wheat per hectare and this year, if the weather conditions remain favourable, then the yield may increase to over 4,800 kg per hectare,” said Dr Naresh Gulati, Deputy Director Agriculture Technology Management Agency (ATMA).

The high temperatures in the February and March months used to badly hit the wheat yield. But this year, the climate has been exceptionally good for wheat. During March, the day temperatures remained between 15 to 25 degree Celsius while the night temperature was between 6 to 12 degree Celsius in the various parts of the state. A little delay, Gulati said, in harvesting should not cause any concern.

Another point of concern is the possibility of rains and hailstorm, said agriculture expert Dr Rajesh Raheja. “Mild rain will not do any damage the crop much but this time of the year is more prone to hailstorms, which can badly affect the crop at final stages,” added Raheja.

The Indian Express

Krishidhan Seeds develop Amber 28 seeds for increasing wheat productivity

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Krishidhan Seeds Pvt Ltd has developed Amber-28 seeds for wheat cultivation which has benefited farmers by increasing productivity, the company said on Friday.

The company said that recently Jagadish Kabadagi a farmer from Terdaal village in Bagalkot District (Karnataka) has achieved a record breaking productivity of 38 quintals of wheat in an acre and was honoured by the Karnataka government for creating a record for high yielding wheat produce.

Generally, the area of wheat world over is 222 million hectares that produces 689 million metric tons, out of which India produces 85 million metric tons, spread across 29 million hectares with an average yield of 28.30 quintals. Amber-28 is a high yielding wheat seed which is highly tolerant to 'Rust Disease' one of the major reasons for low wheat produce.

Mr Sushil Karwa, managing director, Krishidhan Seeds said, "Seeds like Amber-28 has surely come a long way and contributed to the overall production of wheat in the country at large. These seeds are developed keeping in mind the different agro-climatic conditions in the country. The average yield of wheat in India is very low because only about 22% of the farmers use high yielding popular varietal seeds and rest use stored seeds from their own farms.

The latter, usually, tend to get contaminated as they are born and reproduced in the same family over and over again resulting in low productivity. Hence, we at Krishidhan always encourage farmers to use research/improved seeds."

Currently India ranks second in the world in the overall production of wheat after China. He further added: "If farmers continue to cultivate such record productivity seeds, India will soon overtake China and become the largest wheat growing country in the world."

The Economic Times

Australia's wheat output seen down

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Australia's wheat output is likely to slide more than 15 percent in 2012/13 from a record-large crop this year as lower global prices may prompt farmers to shift to other crops such as canola and barley.

Wheat output is expected to fall to 25 million tonnes in the year to June 2013, down from an all-time high of 29.5 million tonnes which is estimated to have been produced this year, according to a Reuters survey of 10 analysts.

Australia is typically the world's fourth largest wheat exporter, and sales are unlikely to diminish in 2012/13 as 25 million tonnes still constitutes a better-than-average crop, analysts said.

But the amount of wheat farmers will want to plant is likely to fall, with global supply forecast to exceed record highs next year and weigh down prices.

The benchmark US wheat futures has lost 1.2 percent so far in March, giving up more ground after finish lower last month due to plentiful supplies.

"We expect a pullback in Australia wheat plantings this year as canola plantings are likely to be the big winner this season because of the margins," said Paul Deane, a senior economist with ANZ.

Adam Davis, a senior commodity analyst at Merricks Capital and who participated the survey, added: 

"Barley prices are slightly less than wheat but yield is much higher and therefore a better cereal crop from a gross margin perspective in the southern states where they don't grow much high protein wheat."

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) will announce its forecast on wheat and other crops next week.

Analysts said plentiful rains in the main crop growing regions boded well for wheat, barley and canola - crops that are planted in the season starting in April.

World wheat stocks at the end of the 2011/12 season look set to eclipse the previous record set more than a decade ago, according to the International Grains Council (IGC), raising its forecast for production to an all-time high.

The IGC, in a monthly update, increased its forecast for world wheat production by five million tonnes to a record 695 million, partly reflecting higher estimates for Kazakhstan, India and Australia.

Global crop prices will retreat sharply this year as farmers around the world expand production to bring stability back to commodity markets and ease fears of food inflation, the US government has forecast.

After two years of razor thin stocks, world crop supplies, led by wheat, are recovering.


India expects 5th straight record wheat crop - U.S. attache

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REUTERS - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in India:

"India expects a fifth record wheat crop in a row, 87.5 million tonnes, on higher planted area and optimal growing conditions in major growing areas to date. MY 2012/13 wheat exports are forecast at 1.5 million tonnes. MY 2012/13 rice production is forecast at 100 million tonnes, marginally lower than the year prior record production. India is unlikely to impose export controls on rice in the near future; MY 2011/12 rice exports are likely to reach 6.5 million tonnes including 2.7 million tonnes of Basmati.

MY 2012/13 coarse grain production is forecast higher at 42.9 million tonnes on expected higher acreage under corn and sorghum. Indian MY 2012/13 corn exports will fall to 2.2 million tonnes on expected strong domestic demand, versus corn exports in current MY 2011/12 estimated at 2.4 million tonnes. MY 2012/13 pulse production is forecast lower at 17.3 million tonnes compared to the MY 2011/12 record production of 18.2 million tonnes on lower acreage.

Pulse imports in MY 2011/12 are estimated to increase to 3 million tonnes. Imports are forecast to remain strong in MY 2012/13 provided international prices remain stable."

Attache reports are not official USDA data.

To see the full report, please go to: r.reuters.com/hec86s

(Washington commodities desk, +1 202 898-8415 ; washington.commodsenergy.newsroom@news.reuters.com)


Iran buys US wheat despite nuclear tensions

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Iran has made a rare purchase of US wheat as it tries to build its food stockpiles amid tougher sanctions imposed by the United States and Europe over its nuclear program, the US government said on Thursday.

The US Agriculture Department reported that Iran bought 120,000 tonnes of US wheat - enough to fill two large cargo ships.

Any sale of grain to Iran requires Treasury Department approval, said USDA spokeswoman Sally Klusaritz.

It was not immediately clear who made the sale or whether the Treasury Department approved the sale before it was announced by USDA earlier on Thursday.

It was also not clear how the deal would be financed.


Japan to cut wheat selling price

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Japan will cut the price at which it sells imported wheat to domestic users to an average 48,780 yen ($610) per tonne from April 1, down 15 percent from the previous six-month period, the farm ministry said on Wednesday, likely paving the way for a fall in prices of bread and other wheat products.

The fall from the current average of 57,720 yen reflects a fall in imported wheat prices in the past six months, with ample global supply weakening Chicago wheat prices, a ministry official said.


Pakistan to import two hybrid wheat varieties from China

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BEIJING: Two hybrid wheat varieties developed by the Beijing Academy of Agriculture and Forestry Sciences, including Beijing Wheat No.6 and No.7, have been successfully grown in pilot areas in Pakistan, and are expected to increase local wheat production by 50 percent.

According to an intergovernmental agreement, Pakistan may start importing and growing the two wheat varieties on a large scale next month, China’s Peoples’ Daily reported.

In fact, Beijing's hybrid wheat was identified by the municipal government as internationally competitive products several years ago, but had not got a chance to be put into commercial use until recently.

The Beijing National Modern Agricultural Science and TechnologyCity, whose construction started in 2010, has conducted bold, innovative seed research with full support of China's Ministry of Science and Technology and Beijing Municipal Science and Technology Commission.

It has actively promoted the cooperation between research institutions and seed companies through the establishment of a breeding platform, an industry association, and an innovative mechanism for research project management, in hopes of building a complete innovation-driven industry chain.

At present, Beijing's seed technology transactions are growing rapidly. The city has sold 51 seed technologies for 190 million yuan since the launch of the Beijing National Modern Agricultural Science and TechnologyCity, up 250 percent from the last cycle.

Algeria seeks 125,000 tonnes of wheat for May

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Algeria's state grains agency OAIC is holding a tender to buy 125,000 tonnes of optional-origin milling wheat for shipment in May, European traders said on Tuesday.

The bidding deadline is on February 23, they said.

The volumes indicated by OAIC in its tenders are nominal and can lead to much bigger purchases, as in its previous milling wheat tender earlier this month, in which traders said it bought at least 700,000 tonnes for April and May.


India's wheat to cross forecast

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India's wheat output in 2011/12 will cross the current official forecast of a record 88.31 million tonnes due to favourable weather conditions, Farm Minister Sharad Pawar said on Friday.

The bumper harvest, on top of ample stockpiles, will benefit local farmers and traders, who have struggled to make overseas sales as international prices have been lower.

India has allowed exports of two million tonnes of wheat, easing a ban on overseas sales imposed in 2007, but shipments have only been around 500,000 tonnes.

India, the world's second-biggest wheat producer, harvested a record 86.87 million tonnes of the grain in 2011.


Russia's wheat seen priced out of exports market

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Russian wheat exporters, who failed to win any business in Egypt's latest buy tender, are gradually being priced out of the export market, though prospects for renewed sales depend on price swings abroad, analysts and producers said.

The Institute for Agricultural Market Research (IKAR) said Russian wheat was offered at $293 per tonne on a delivered basis in the latest tender held by Egypt's General Authority for Supply Commodities and was beaten out by US wheat.

GASC said on Saturday it bought 55,000 tonnes of US soft red winter wheat from Venus at $262 per tonne with freight costs of $27 per tonne, undercutting Russia, and the Egyptian buyer said US wheat would likely remain competitive.

GASC is by far Russia's largest wheat buyer.

Based on the offer levels, IKAR pegged Russian export wheat with 12.5 percent protein content at $275 per tonne on a free-on-board (FOB) basis but said Russian export prices were in "total disarray".

"At the same time, the bulk of physical shipments are currently ongoing for old contracts which Russian exporters won at only $244-250 per ton," IKAR said.

"Taking in mind all circumstances, current 12.5 percent protein Black Sea FOB is estimated at $275 per tonne," IKAR said.

It is much lower than parity domestic farmers expectations, which makes future (Russian) exports questionable until the end of the season."

A possible export duty to regulate grain exports had been under discussion in some parts of the government, but a higher-than-expected final harvest figure of 93.9 million tonnes persuaded officials to forgo limits for the time being.

The government had been expected to allow maximum exports of 24-25 million tonnes for the 2011/12 crop year, but Russia's top agriculture official, said the forecast for Russia's exportable surplus had been raised to 27 million tonnes.

The Grain Producer's Union, an industry lobby chaired by the head of a Siberian producer, issued a statement praising the government's effective decision to raise the limit on duty free exporters, saying the domestic market would rebalance to prevent excessive exports.

"For the foreseeable future, there is no basis for administrative limits on exports," Union head Pavel Skurikhin, chairman of Novosibirsk-based SAHO, said in the statement.

Skurikhin said Russia risked fresh damage to its reputation on international markets, whose confidence in Russian supplies was shaken in 2010 when the government banned exports during a catastrophic drought, leading to some cases of force majeure.


Argentine wheat reform disappoints farmers, so far

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* Corn, wheat farmers gripe about below-market prices

* Real test for new rules to come in 2012/13 season

By Hugh Bronstein

(Reuters) - Argentine farmers say they are still being paid below-market prices for wheat despite a new government export system aimed at increasing competition among millers and exporters.

Growers had long urged President Cristina Fernandez to free the wheat market from a government-imposed quota system designed to ensure abundant domestic food supplies, but which they said benefited buyers at their expense.

Last month, the government scrapped the unpopular quotas and said the total exportable wheat surplus would be cleared for export in a bid to avert oversupply and low prices for farmers.

The true test of the new system will come in the next season, as a good portion of this year's wheat had already been shipped when the reform took effect. But for now, farmers say they have yet to see any benefit and there is widespread uncertainty in the industry over how it will really work.

"So far, the change is in name only," one farmer told Reuters, asking that he not be identified in order to avoid problems with the government.

"It's what we call 'gatopardismo', which means changing things to make sure they stay the same," the grower said, pointing to the spread between the $165 per tonne that Argentina's farmers are being paid for wheat and the market price of $208 per tonne.

A wide spread also existed for corn, with farmers offered $150 per tonne versus the market price of $199. Soy, which is exported freely from Argentina, was meanwhile operating at a minimal spread of $305 versus $309, according to information provided by the grower.

Cristian Amuchastegui, head of the Rosario grains exchange, said "the wheat market continues not to function".

"We had higher expectations than what has really come to pass," he told daily newspaper Ambito Financiero this week.

Farmers say the lack of an open market kills the profit in growing wheat, thus restricting crop rotation needed to conserve soils used to grow the country's biggest export earner, soy.

Argentina supplies nearly half the world's soyoil, used for cooking and in the booming international biofuels sector. It is also the No. 3 exporter of soybeans, a major source of protein for an increasingly hungry planet.

FACING THE FALLOUT

Concerned parties from grains traders to sovereign bondholders are watching the new wheat-export scheme - which the government says will soon also apply to corn exports - for signs of how the administration will face the fallout expected this year from the sluggish world economy and Europe's debt crisis.

Fernandez is known for unorthodox, hard-to-predict policies.

She won re-election last year promising to deepen the model of her government, characterized by generous welfare spending, state intervention in the markets and import substitution.

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Factbox on Argentina political risk

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As the global population grows to an estimated 9 billion by 2050, demand for food will nearly double, according to the United Nations. Argentina will be key to meeting that need.

David Hughes - a wheat farmer in the town of Alberti, Buenos Aires province, and former head of industry chamber Argentrigo - said no one expects the government to free the wheat market to the point of risking higher domestic bread prices paid by voters already hit by Argentina's double-digit inflation.

"The government will continue to open exports only when it knows it has enough wheat for the domestic market," Hughes said.

The government has said it needs 7 million tonnes of wheat for the local market this season. The agriculture ministry has estimated a 2011/12 crop of 13 million to 14 million tonnes.

Starting in the 2012/13 season, the whole exportable surplus is expected to be announced at once, rather than gradually. The aim is to induce competition among traders bidding for wheat.

"Farmers will not be as hard-hit as they were under the previous system, but they will still be subject to export limits and the government's arbitrary interventions will continue," Hughes said. "The policy model, aimed at keeping domestic bread prices down by creating oversupply of wheat, has not changed."

Indeed, Argentina's pugnacious price czar Guillermo Moreno, enforcer of Fernandez's interventionist policies, got increased powers soon after the president started her second term in December.

Ernesto Ambrosetti, chief economist at the Argentine Rural Society, which represents some of the country's biggest farms, said the age of state intervention in Argentina was not over.

"Producers continue to have no motivation to invest in wheat farming," he said. "Until you free the whole wheat market, there will be no real competition." (Editing by Dale Hudson)


Malaysia, Indonesia seek to buy Australian wheat

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Flour millers from Indonesia and Malaysia are negotiating deals to buy some 200,000 tonnes of high-protein Australian milling wheat for April shipment, while Vietnamese buyers are in market for March arrival corn.

Asian millers have stepped up purchases of wheat, corn and soybean as prices rose over the last few weeks due to the harsh winter in Europe and drought in South America.

"Most millers in Asia are short on high-protein wheat, so they are looking at Australian cargoes," said a trading manager with an international trading company in Singapore.

"They have been postponing purchases, expecting prices to fall." Australian prime hard wheat with 11.5 percent protein was quoted at around $325 a tonne, including cost and freight, into Southeast Asia, compared with US hard red winter wheat with similar protein scales being offered at $335 a tonne.

Dark northern spring wheat from the United States was quoted this week close to $400 a tonne, C&F.

A global demand-supply report from the US Department of Agriculture on Thursday showed larger-than-expected supplies of corn and soybeans even as a severe drought curbed yields in Brazil and Argentina.
Chicago wheat slid almost 1 percent on Friday, falling for a fourth straight session and touching its lowest in almost two weeks, while soybeans and corn lost more ground.

Wheat is down 3 percent so far this week, corn has shed 1.6 percent and soybeans have lost about 1 percent, all on course to snap a three-week rising streak.

Japan's farm ministry bought 75,742 tonnes of milling wheat from the United States and Canada, the volume it had sought, in a weekly tender.

In the feed grain market, Vietnam and Malaysia are seeking new-crop South American corn for April shipment.

"They haven't signed any deals yet, but we expect them to contract some cargoes next week," said another Singapore trader.


Bhutan happy over Indian exemption of export ban on milk powder, wheat

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(FnB News) Bhutan has expressed happiness over acceptance of its request of exemption from application of any export bans on essential commodities.

Anand Sharma, minister of commerce, industry and textiles, during his meeting with Lyonpo Khandu Wangchuk, minister for economic affairs of Bhutan, recently, informed that director-general of foreign trade has issued notification exempting Bhutan from the application of export ban on milk powder, wheat, edible oil, pulses and non-Basmati rice with annual limits indicated by the Bhutanese side.

“India values the special relationship with Bhutan and we will be happy to expand our multifaceted cooperation which already covers key sectors such as hydropower, health, education, human resource development, media, telecom, ICT and infrastructure,” said Sharma.

Total trade between the two countries has been increasing. Total exports to Bhutan were $176 million while total imports from Bhutan were $201.57 million during 2010-11. India’s trade balance with Bhutan has turned negative from 2006 i.e. India imports more than it exports to Bhutan. Both the minister expressed the confidence that the trade could be diversified and also be doubled in less than 5 years.

Bhutan happy over Indian exemption of export ban on milk powder, wheat

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(FnB News) Bhutan has expressed happiness over acceptance of its request of exemption from application of any export bans on essential commodities.

Anand Sharma, minister of commerce, industry and textiles, during his meeting with Lyonpo Khandu Wangchuk, minister for economic affairs of Bhutan, recently, informed that director-general of foreign trade has issued notification exempting Bhutan from the application of export ban on milk powder, wheat, edible oil, pulses and non-Basmati rice with annual limits indicated by the Bhutanese side.

“India values the special relationship with Bhutan and we will be happy to expand our multifaceted cooperation which already covers key sectors such as hydropower, health, education, human resource development, media, telecom, ICT and infrastructure,” said Sharma.

Total trade between the two countries has been increasing. Total exports to Bhutan were $176 million while total imports from Bhutan were $201.57 million during 2010-11. India’s trade balance with Bhutan has turned negative from 2006 i.e. India imports more than it exports to Bhutan. Both the minister expressed the confidence that the trade could be diversified and also be doubled in less than 5 years.

Extreme heat hurts wheat yields as world warms: study

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(Reuters) - Extreme heat can cause wheat crops to age faster and reduce yields, a U.S.-led study shows, underscoring the challenge of feeding a rapidly growing population as the world warms.

Scientists and farmers have long known that high heat can hurt some crops and the Stanford University-led study, released on Monday, revealed how the damage is done by tracking rates of wheat ageing, or senescence.

Depending on the sowing date, the grain losses from rapid senescence could reach up to 20 percent, the scientists found in the study, published in the journal Nature Climate Change.

Lead author David Lobell and his colleagues studied nine years of satellite measurements of wheat growth from northern India, tracking the impact of exposure to temperatures greater than 34 degrees Celsius to measure rates of senescence.

They detected a significant acceleration of ageing that reduced the grain-filling period. The onset of senescence imposes a limit on the time for the plant to fill the grain head.

"What's new here is better understanding of one particular mechanism that causes heat to hurt yields," Lobell told Reuters in an email. He said that while there had been some experiments showing accelerated ageing above 34 degrees Celsius, relatively few studies considered temperatures this high.

"We decided to see if these senescence effects are actually occurring in farmers' fields, and if so whether they are big enough to matter. On both counts, the answer is yes."

Climate scientists say that episodes of extreme heat are becoming more frequent and more prevalent across the globe, presenting huge challenges for growing crops.

Wheat is the second most produced crop in the world after corn and the United Nation's Food and Agriculture Organization says global food production must increase by 70 percent by 2050 to feed a larger, more urban and affluent population.

LEARNING TO ADAPT

Wheat is particularly sensitive to temperature and is typically sown in late autumn or early winter and harvested before the heat of summer.

Lobell said his team's findings could help refine steps to adapt crops and growing times as the planet warms.

"Heat-tolerant varieties will be key. Whether this means faster growing in order to escape extreme heat, more capable of coping with extreme heat, or a combination of both is hard to say," he said.

"One challenge with sowing earlier is that there is a summer crop, usually rice, which has to be harvested before wheat is sown. That is why in many places wheat is actually sown well after the optimum window climatically."

Lobell said extreme heat wasn't the only reason for lower yields. "But in hot places it is important enough to be among the top few reasons for why heat hurts," he added.

A 2010 study by scientists in Australia found wheat output fell by up to half during a growing season where temperatures were two degrees Celsius higher than average, with much of the losses caused by temperatures above 34 degrees Celsius.

Another study published in the journal Nature Climate Change last week said geo-engineering could help lower temperatures and boost crop yields, although it had drawbacks.

Ken Caldeira of the Carnegie Institution for Science, at Stanford University, and his colleagues found that shielding the Earth with aerosol particles lobbed into the stratosphere could dramatically increase yields of corn, wheat and rice.

Using two computer models, the researchers estimated corn production would rise by 14 percent, wheat by 21 percent and rice by 8 percent. This contrasts with suggestions in the scientific community that geo-engineering would threaten food and water supplies for billions of people.

But Caldeira noted that it could result in localized drops in crop productivity, and the shading effect would not stop ocean acidification, which could affect marine productivity.

(Additional reporting by Deborah Zabarenko in Washington; Editing by Miral Fahmy)


Extreme heat hurts wheat yields as world warms: study

Posted by Flora Sawita Labels: ,

(Reuters) - Extreme heat can cause wheat crops to age faster and reduce yields, a U.S.-led study shows, underscoring the challenge of feeding a rapidly growing population as the world warms.

Scientists and farmers have long known that high heat can hurt some crops and the Stanford University-led study, released on Monday, revealed how the damage is done by tracking rates of wheat ageing, or senescence.

Depending on the sowing date, the grain losses from rapid senescence could reach up to 20 percent, the scientists found in the study, published in the journal Nature Climate Change.

Lead author David Lobell and his colleagues studied nine years of satellite measurements of wheat growth from northern India, tracking the impact of exposure to temperatures greater than 34 degrees Celsius to measure rates of senescence.

They detected a significant acceleration of ageing that reduced the grain-filling period. The onset of senescence imposes a limit on the time for the plant to fill the grain head.

"What's new here is better understanding of one particular mechanism that causes heat to hurt yields," Lobell told Reuters in an email. He said that while there had been some experiments showing accelerated ageing above 34 degrees Celsius, relatively few studies considered temperatures this high.

"We decided to see if these senescence effects are actually occurring in farmers' fields, and if so whether they are big enough to matter. On both counts, the answer is yes."

Climate scientists say that episodes of extreme heat are becoming more frequent and more prevalent across the globe, presenting huge challenges for growing crops.

Wheat is the second most produced crop in the world after corn and the United Nation's Food and Agriculture Organization says global food production must increase by 70 percent by 2050 to feed a larger, more urban and affluent population.

LEARNING TO ADAPT

Wheat is particularly sensitive to temperature and is typically sown in late autumn or early winter and harvested before the heat of summer.

Lobell said his team's findings could help refine steps to adapt crops and growing times as the planet warms.

"Heat-tolerant varieties will be key. Whether this means faster growing in order to escape extreme heat, more capable of coping with extreme heat, or a combination of both is hard to say," he said.

"One challenge with sowing earlier is that there is a summer crop, usually rice, which has to be harvested before wheat is sown. That is why in many places wheat is actually sown well after the optimum window climatically."

Lobell said extreme heat wasn't the only reason for lower yields. "But in hot places it is important enough to be among the top few reasons for why heat hurts," he added.

A 2010 study by scientists in Australia found wheat output fell by up to half during a growing season where temperatures were two degrees Celsius higher than average, with much of the losses caused by temperatures above 34 degrees Celsius.

Another study published in the journal Nature Climate Change last week said geo-engineering could help lower temperatures and boost crop yields, although it had drawbacks.

Ken Caldeira of the Carnegie Institution for Science, at Stanford University, and his colleagues found that shielding the Earth with aerosol particles lobbed into the stratosphere could dramatically increase yields of corn, wheat and rice.

Using two computer models, the researchers estimated corn production would rise by 14 percent, wheat by 21 percent and rice by 8 percent. This contrasts with suggestions in the scientific community that geo-engineering would threaten food and water supplies for billions of people.

But Caldeira noted that it could result in localized drops in crop productivity, and the shading effect would not stop ocean acidification, which could affect marine productivity.

(Additional reporting by Deborah Zabarenko in Washington; Editing by Miral Fahmy)


Indonesia's 2012 wheat flour consumption seen up

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Wheat flour consumption in Indonesia will increase by as much as 6 percent to 5 million tonnes this year, as demand from an emerging middle class grows for wheat products such as bread, an industry association said on Tuesday.

"We are optimistic that domestic wheat flour consumption will grow at least 5 to 6 percent in 2012, or at least equal to GDP growth," Franciscus Welirang, the chairman of the Indonesia Wheat Flour Producers Association (Aptindo), told reporters.

"Indonesia's bread industry is experiencing the highest wheat flour consumption growth," Welirang added.

He said Indonesia's 2011 wheat imports were 5.2 million tonnes, in line with an estimate he made in June last year.

"Projected improvements in economic conditions in 2012, declining global wheat prices, an increasing Indonesian population and the development of domestic wheat flour industries are among factors driving domestic wheat flour consumption," Welirang said.

Indonesia, Asia's top wheat importer, relies entirely on imports for its wheat and gets around 70 percent of supplies from Australia, with Canada and the United States accounting for a large portion of the remainder.

But Australia, expected to see a record wheat crop and exports in 2011/12, has had a deluge of rain in some areas that will reduce the quality of the crop.
Welirang said he was unconcerned by the wet weather as Indonesia largely imported from Australia's west coast.

"The wheat flour market is expected to improve in 2012 because international wheat flour prices will be more stable than in 2011," Welirang said.

"Weather conditions are expected to be better and wheat harvests are also expected to improve.

"Over the next 12 months there is no indication that global wheat prices will increase dramatically, unless due to price speculators." A sign of Indonesia's growing demand for wheat flour is seen in the increasing number of flour millers, which according to Aptindo now number 22, up from 18 last year.


Indonesia's 2012 wheat flour consumption seen up

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Wheat flour consumption in Indonesia will increase by as much as 6 percent to 5 million tonnes this year, as demand from an emerging middle class grows for wheat products such as bread, an industry association said on Tuesday.

"We are optimistic that domestic wheat flour consumption will grow at least 5 to 6 percent in 2012, or at least equal to GDP growth," Franciscus Welirang, the chairman of the Indonesia Wheat Flour Producers Association (Aptindo), told reporters.

"Indonesia's bread industry is experiencing the highest wheat flour consumption growth," Welirang added.

He said Indonesia's 2011 wheat imports were 5.2 million tonnes, in line with an estimate he made in June last year.

"Projected improvements in economic conditions in 2012, declining global wheat prices, an increasing Indonesian population and the development of domestic wheat flour industries are among factors driving domestic wheat flour consumption," Welirang said.

Indonesia, Asia's top wheat importer, relies entirely on imports for its wheat and gets around 70 percent of supplies from Australia, with Canada and the United States accounting for a large portion of the remainder.

But Australia, expected to see a record wheat crop and exports in 2011/12, has had a deluge of rain in some areas that will reduce the quality of the crop.
Welirang said he was unconcerned by the wet weather as Indonesia largely imported from Australia's west coast.

"The wheat flour market is expected to improve in 2012 because international wheat flour prices will be more stable than in 2011," Welirang said.

"Weather conditions are expected to be better and wheat harvests are also expected to improve.

"Over the next 12 months there is no indication that global wheat prices will increase dramatically, unless due to price speculators." A sign of Indonesia's growing demand for wheat flour is seen in the increasing number of flour millers, which according to Aptindo now number 22, up from 18 last year.


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