Global: Flour mills face supply problems as wheat farmers control stocks

By Naveen Thukral and Renee Hickman SINGAPORE/CHICAGO (Reuters) - Wheat farmers in several exporting countries are reluctant to sell their crops at prices close to four-year lows, traders, farmers and millers said, leaving flour makers with dwindling supplies and vulnerable to any potential price spike. Grain processors typically buy wheat three to four months in advance. But mills in Asia, including in Indonesia, the world’s second-largest wheat importer, are currently covered for about two months, and in the Middle East most grain processors only have up to 45 days of supplies, two millers and a trader said. The limited supplies held by flour makers provide little protection against any production shortfall that could trigger a spike in world prices, with global stockpiles already projected to hit a nine-year low and fuel food inflation. Farmers are hoarding their crops as global wheat prices have fallen to their lowest level since 2020 due to solid production in Australia and ...