AUSTRALIA

AUSTRALIA

It got up to 37 degrees in Sidney today. The weather has been crazy like this for a while. Keep in mind that it is just the beginning of Spring in Sidney right now. And remember that they measure temperature in Celsius. 37 C equals 98 F Now, that's hot! Summer doesn't start there until late in December. Not only is it hot but it has been very dry. It has been so dry that wild fires are prevalent.

This hot and dry weather is wreaking havoc on the Australian wheat crop. Futures pricing for wheat is starting to edge upward. It has put a real dent in wheat stock around the world. We have enough stored away to put off huge price increases in bread and related products. This might not be the case if Australia or one of the other large players in that market has another off year in 2007.