SHANGHAI (Interfax-China) -- An outbreak of sharp eyespot disease (SED), which affects cereals, is threatening 72.46 million mu (4.83 million hectares) of wheat in China's major producing regions, according to local agricultural authorities.

SED might erode the wheat output by 10% to 20%, while a more serious epidemic could cut output by as much as 50%, officials from the Henan Oil and Grain Product Quality Inspection Center told Interfax. "As it is still the early growth stage for wheat, the impact on output might be reduced, although wheat quality may be downgraded," an official from the center said.

Huang Junfei, a senior commodity analyst with Changjiang Futures, believes SED may well erode wheat output by around 5% on the 4.8 million affected hectares. As there are still a few months before the harvest, good farm work may be able to make up the losses.