Russian Drought Impact: Rise in wheat prices fastest since 1973 (via @FT)

Wheat field, Ukraine, 2008. Drought is decimating Russia's wheat crop this year. Photo from Creative Commons by dobrych/flickr.

 

http://www.ft.com/cms/s/0/51913ed6-9e60-11df-a5a4-00144feab49a.html

 

Financial Times: Javier Blas and Isabel Gorst: "Wheat prices have seen the biggest one-month jump in more than three decades on the back of a severe drought in Russia, prompting warnings by the food industry of rising prices for flour-related products such as bread and biscuits...."

 

"...The rally comes as the worst heatwave and drought in more than a century continues to devastate grain crops in Russia, Ukraine and Kazakhstan.

 

The trio are among the world's top-10 wheat exporters and key suppliers to countries in North Africa and the Middle East - the largest importing region in the world. Executives and traders fear the three countries could restrict their grain exports or even impose an export ban in an effort to keep their local market well supplied and prices low...."

 

The report, which says Russian wheat harvest could be down by more than a quarter, also indicates that Canadian wheat harvest will be down by about one third this year due to heavy rain during planting season.

 

also see: August 2, 2010: Weather woes spark fears for wheat (via @FT)

http://www.ft.com/cms/s/0/053717e6-9e64-11df-a5a4-00144feab49a.html

 

also see: Signs From Earth Notes: Russia Drought

http://ddimick.posterous.com/?sort=&search=russia+drought

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