Thursday, August 5, 2010

Russia Bans Grain Exports Amid Massive Heat Wave, Drought and Wildfires

Prime Minister Putin announced today that Russia would impose a temporary ban on grain exports from August 15 to December 31 in light of the decimation of wheat crops by widespread drought, combined with an unprecedented heat wave and wildfires throughout the grain-producing regions of Russia. The announcement has caused world wheat futures to spike to a two-year high. As recently as late July, Russia had said that grain reserves from previous years' harvests were sufficient to meet the country's needs, as well as to satisfy export targets.

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