Elevated levels of the grain fungus ergot are showing up in spring wheat being harvested in south-central North Dakota, prompting grain elevators to impose discounts and even turn some truckloads away, grain merchants said on Tuesday.
Ergot is a common grain fungus but some major buyers, including top global wheat importer Egypt, have rejected cargoes with even trace amounts in the past.
Though confirmed in only one area so far, according to grain merchants who spoke to Reuters, the fungus could be another headache for US wheat farmers whose grain has lost share in the world market due primarily to high prices.
North Dakota is the top growing US state of spring wheat, a high-protein variety milled into flour for specialty breads, bagels and pizza dough.
A grain elevator operated by CHS Inc in Sterling, North Dakota, was already rejecting some wheat deliveries, according to elevator manager Eric Basnett.
"It's pretty prevalent. Some of the heavier loads we've been seeing are anywhere from 0.08 to a 1.15 (percent ergot content). The limit with no discount is 0.05 or less," Basnett said. "It's definitely widespread this year."
Basnett said the ergot could be more pronounced in early-harvested fields.
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