Russian wheat price reaches historic highs
RIA Novosti/Alexandr Kryazhev
04 July, 2012
Prices for Russian fourth-grade milling wheat skyrocketed due to the drought in the US and Latin America.
*Prices rose to a historic 8900 roubles ($276) from 7075 ($219) a metric ton a week ago in the Black sea ports according to the Institute for Agricultural Market Studies (IKAR).
This is the first price hike since the 2010 drought in Russia when the government was forced to impose an export embargo to prevent home market prices from rising. The embargo was lifted in 2011.
Global wheat and maize prices also jumped nearly 30% mainly due to a drought in the United States and parts of Latin America. According to the US Department of Agriculture about 22 percent of the wheat crop has suffered and less than 50 percent remained intact.