Wheat prices soar on drought in Russia, CIS.

By bne IntelliNews July 26, 2010
The price of wheat at the Chicago Goods Exchange reached USD 219.65 per ton last week, which makes 8.3% w/w increase. This is the highest price of wheat seen since June 2009. Major reason for wheat price hike is an ongoing drought in Russia, Kazakhstan and Europe. Russian Agricultural Minsitry already decreased the forecasted grain crop this year from 97mn tons to 85mn tons this year and does not exclude further cuts of crop projections for this year. In 23 Russian regions that suffer from drought state of emergency is already implemented. Authorities are hoping to solve grain deficit, satisfy domestic demand and control the prices of wheat by organising interventions from State Grain Fund, which will be available for orders from producers suffering from drought in August.

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