Tag: wheat

August 5, 2010 General Ag News and Notes Post a Comment

Russia Bans Grain Exports Amid Crippling Drought

MOSCOW — Prime Minister Vladimir V. Putin on Thursday banned all exports of grain after millions of acres of Russian wheat withered in a severe drought, driving up prices around the world and pushing them to their highest level in two years in the United States.

The move was the latest of several abrupt interventions in the Russian economy by Mr. Putin, who called the ban necessary to curb rising food prices in the country. Russia is suffering from the worst heat wave since record-keeping began here more than 130 years ago.

“We need to prevent a rise in domestic food prices, we need to preserve the number of cattle and build up reserves for next year,” Mr. Putin said in a meeting broadcast on television. “As the saying goes, reserves don’t make your pocket heavy.”

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August 5, 2010 General Ag News and Notes Post a Comment

The Associated Press: Wheat futures soar after Russia ends exports

NEW YORK — Wheat prices are soaring their maximum allowed amount on the Chicago Board of Trade after Russia banned grain exports for the rest of the year.

Prices shot up 60 cents, or 8 percent, to $7.8575 immediately after the open of trading on Thursday. It’s the highest price since August 2008.

CBOT rules stipulate that prices can rise a maximum of 60 cents in one day, although they are allowed to rise more the following day if the 60-cent limit is hit.

The price of wheat has been soaring since early June, and notched its biggest monthly gain in July in at least 51 years.

Russia, one of the world’s biggest grain exporters, cut off wheat exports because a severe drought has already destroyed one-fifth of that country’s crop.

Copyright © 2010 The Associated Press. All rights reserved.

The Associated Press: Wheat futures soar after Russia ends exports

August 3, 2010 General Ag News and Notes Post a Comment

Drought Strains Russian Wheat Supplies

Wheat prices in Europe reached a two-year high this week after Russian officials announced that extreme heat and drought had decimated roughly 20 percent of the country’s winter crop. Prices retreated slightly after the country’s Agriculture Ministry said that Russia, the world’s third-largest wheat exporter, would use its stocks to maintain exports.

Despite the reassurances, financial markets remained concerned that the wheat losses could be higher than projected, The Financial Times reported. Meteorological reports indicate that hot, dry weather in Russia will continue until mid-August.

Poor growing weather has also stunted wheat harvests in other countries, including Canada, where unusually heavy rains will reduce yields by about 17 percent. Ukraine faces an even more severe grain shortage after a growing season marked by drought and floods, leading government officials to impose a wheat export ban. Meanwhile, hot, dry weather in Western Europe is expected to reduce production of a wide swath of food commodities.

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