Wheat prices go big

Russia halts wheat exports and the prices soar.

Wheat markets raced to fresh highs on Thursday, with Chicago wheat trading limit-up, as Russia announced a halt to grain exports from next week in response to a drought that has withered crops.

Russia’s worst drought on record has devastated crops in parts of the country and sent international grain prices soaring as markets have speculated on restricted supply from one of the world’s leading exporters.

Prime Minister Vladimir Putin told a government meeting on Thursday that a temporary ban on grain exports was needed, a spokesman saying the ban extends to already signed contracts and will begin on August 15.

September wheat on the Chicago Board of Trade rose by a limit-up 60 cents to $7.85-3/4 by the close of the electronic session, a high for the contract and a 23-month high for front-month prices. The prospect of export curbs in Russia has lifted markets by making world supply tighter and offering opportunities to other major exporters including the United States and European Union.

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Posted on August 5, 2010, in Global Biz and tagged , , , , , . Bookmark the permalink. 1 Comment.

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