Facing severe drought and rampaging wildfires, Russia has dropped its grain crop forecast for 2010. The move has sent wheat prices to a two-year high.
As Russia continues to suffer through its worst drought in 130 years, officials said Tuesday that the extreme heat and wildfires had by the end of July scorched grain crops on 10 million hectares (24.7 million acres), an area roughly the size of Portugal.
Expectations that Russia will slash exports, in addition to low yields expected in the equally drought-stricken Ukraine and Kazakhstan and a low harvest in Canada, have led to a spike in global wheat prices and could, down the line, result in an increase in the cost of bread worldwide, especially in the Middle East, Africa and parts of Asia.
Continue reading here:
Global wheat prices soar as Russia cuts crop forecast