The Queensland flooding has hit major commodity supplies like wheat, coal and sugar sparking speculations of a crisis for the year.

Queensland's State Treasurer Andrew Fraser says the impact on the country's economy will be significant. "It will run into billions not millions of dollars," he said. "And that is not just from the repairs and the losses that the government will face in terms of rebuilding towns and rebuilding infrastructure which has been washed away.

He added: "Mines are flooded, railway lines are cut and many bridges have been damaged. The long-term effect of the flooding will be significant on the economy."

The flooding is the worst in the country in more than 50 years. Australia is one of the leading exporters of coal, with majority of its supplies originating from Queensland. In 2009, the country exported 259 million tons of coal says International Energy Agency.

This has led international spot prices for coking coal to jump by 10 percent recently with buyers forecasting prices to increase further in the coming weeks. "Prices will rise significantly but will eventually ease back again once production gets back into full swing," David Brewer of the Confederation of UK Coal Producers told the BBC.

Along with coal, Australia is also a major wheat exporter with Queensland accounting for 5 percent of its wheat supply. "A significant proportion of wheat has been destroyed," Wayne Newton, president of the Agforce farmer's lobby group said. "What has been retrieved has been downgraded to animal feed and will not be used for making bread."