World wheat production in 2012/2013 is projected down slightly by 0.8 million tons to 654.3 million. For Argentina, the wheat crop projection is reduced 0.5 million tons to 11.0 million.

With about 90 percent of wheat already harvested, both area harvested and yields are expected to be lower than previously forecast.

Heavy rainfall for more than 3 months in a row since October is expected to reduce harvested area and has reportedly led to outbreaks of fungal diseases that have further hurt yields.

In Russia, the government statistical agency reported that in 2012/13 wheat production, in so-called “clean weight” (which measures grain after it has been dried and cleaned of impurities), reached 37.7 million tons, down 0.3 million from last month’s forecast, and down 18.5 million tons on the year.