The price of wheat is expected to remain volatile as the markets wait to hear whether Ukraine will join Russia in imposing an export ban. Theprice of grain has rocketed in recent weeks over concerns about a shortage of supply.
Ukraine, Russia and Kazakhstan usually produce so much grain that together account for finally a third of theworld’s export of it. But as everyone has heard about, the drought of this summer provoked really huge fires all across the country that destroyed about a third of the crop so to protect supplies at homeRussia has banned grain exports until the end of the year.
That is led of a massive rise in the price of wheat on international markets. But in food markets the concern is the stable foods like bread,will increase in price also. In august the Ukrainian president tried to reassure shoppers. This region is usually called the bread basket of Europe because of its massive harvest. It may stop exportinggrain, and could even have to buy it from other countries
Russia to impose temporary ban on grain exports
Russia is to ban the export of grain from 15 August to 31 December after drought andfires devastated crops."I think it is advisable to introduce a temporary ban on the export from Russia of grain and other agriculture products made from grain," Russian Prime Minister Vladimir Putinsaid.Russia, one of the biggest producers of wheat, barley and rye, exported a quarter of its 2009 grain output.
Mr Putin's announcement sent wheat prices to a 23-month high.They had already hit 22-monthhighs earlier this week due to concerns about the impact of the drought and fires on Russian wheat exports.However, many commodities analysts insist there is currently a surplus of wheat in globalmarkets following record harvests in 2008 and 2009.
They say that speculators have been driving wheat prices artificially high because they are hoping to make a profit from the worries over Russian...