Russia bans grain exports.

By bne IntelliNews August 6, 2010
In order to avoid rise of the domestic food prices, protect the livestock and form the grain reserves for the next year, Russia is temporarily banning the exports of grain, PM Vladimir Putin announced. The ban will stay in power from August 15 until December 1 2010. Also, agricultural producers that suffered from drought will receive RUB 35bn worth of aide, out of which RUB 10bn will be in direct subsidies and RUB 20bn in three-year subsidized loans. The distribution of grain from the grain reserves will not be auctioned-based, but will be based on the amounts of grain needed by each federal region. Following the announcements, the price of wheat on world's bourses jumped to yet another record, with about 4.5% increase in the price of wheat futures with delivery in September in bourses in USA and Asia (in US, the price of a bushel (27kg) of wheat made USD 8.21 or USD 304 per ton).

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