Millers and bakers are draining wheat reserves and paying more for spring wheat used in baking, as drought shrivels crops across the Canadian Prairies and northern U.S. Plains that produce more than half of the world's supply, reports Reuters.
U.S. and Canadian farmers are bracing for a sharply smaller spring wheat harvest due to the driest conditions in decades, as severe weather damages crops across the hemisphere.
While overall global wheat stocks are large, the drought affects mainly the high-protein spring wheat crop that millers such as ADM and bakers rely on to produce the texture and moistness in baked goods that consumers expect.
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