Turkey's wheat production is expected to fall by 16% in 2012-13 due to adverse weather, according to the U.S. Department of Agriculture's Ankara attache, with concerns from the country's importers that it'll also be difficult to source supplies from Russia.

The USDA said its output forecast had been revised downward to 15.7 million metric tons after the main growing region of Central Anatolia was hit hard by frost in the winter and dry weather in the spring.

It said yield losses reached 70% in some areas of the region, while the overall figure was 40%, with weed problems common in wheat fields due to excessive rain in May.

The USDA added there are concerns about Russian wheat exports to Turkey, as importers believe that the country will implement an export tax in September and an export ban in November.

It said that there is strong demand from Turkish buyers but they are hesitant due to price volatility, with Russia already storing exportable wheat in silos at ports even though such prices are lower than domestic levels.

Last week the United Nations' food body estimated Turkey's 2012-13 wheat production at 19.5 million tons, calling this an average level compared with last year's bumper crop. The Food and Agriculture Organization added that Turkey remains one of the leading exporters of wheat flour in the world, with around 70% destined for Iraq and Indonesia.

However, the USDA said that the pace of wheat flour exports has begun to decline due to high prices and some direct imports from Iraq millers. Wheat flour exports have also slowed to Indonesia and the African market, including Libya, it noted, and Turkish millers are not enthusiastic about exports under U.N. programs.

Write to Michael Haddon at michael.haddon@dowjones.com

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(END) Dow Jones Newswires

August 15, 2012 05:56 ET (09:56 GMT)