What to expect from wheat
The Russian ban on wheat has begun.
The US Department of Agriculture (USDA) has sharply cut its outlook for world wheat production after revising down its crop forecast for Russia.
Global production would be 15.3m tons lower at 645.7m tons, it said.
The production outlook for Russia, which has seen its crops devastated by drought and extreme heat, was lowered by 15% to 45m tonnes. Neighbouring Kazakhstan also had its forecast cut. World wheat stocks still remain above crisis levels seen in 2007-08.
The USDA said stocks would fall from just under 194m tons to 174.8m tons
The cut to production forecasts was bigger than analysts had expected, but it was offset somewhat by increases in production forecast in the US, India, Australia and Uzbekistan.
The drought in Russia is beginning to ease, so production will work its way back up to normal levels.