| inbluevt | Date: Wednesday, 2013/10/09, 6:40 PM | Message # 1 | DMCA |
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Russia's agricultural ministry will meet Friday to discuss limiting wheat exports as the country's key Black Sea-producing region has been wilted by drought, but few believe it will repeat the total ban on exports it implemented in 2010 during similar drought conditions.
The prospect of Russia, the world's third-largest wheat exporter, not having enough wheat to
export after its domestic demand is met would affect bread prices in the Middle East and North Africa because they would have to buy more expensive wheat from major producers like the U.S., Canada, France and Australia.
Russia's 2010 export ban helped cause price spikes and bread protests in volatile areas of the Middle East, like Yemen and Egypt.
On Wednesday wheat prices rallied for the first time in six sessions, attributed to speculation of a move by Russia to curb exports. However, the rally also came a day after wheat slid to its lowest level since September on the announcement by the Egyptian government's commodities authority that it purchased 180,000 metric tons of wheat from Russia and Romania. Russia is a major competitor for U.S. wheat, so the market viewed this as a blow to the world's largest wheat producer and exporter. Egypt is the No. 1 buyer of the grain; the desert country cannot feed its population from its national production.
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 A French farmer sits in his combine as he harvests his wheat crop in Gremonville, northern France, Aug.16, 2012. France is the EU's biggest wheat grower and exporter, but Russia is No. 3 and its wheat is cheaper and in greater demand in volatile countries like Egypt and Yemen where
citizens spend as much as 60 percent of their income on food. Price spikes in these countries can lead to more than grouchy consumers; they can lead to riots and social upheavals.
Message edited by inbluevt - Wednesday, 2013/10/09, 6:42 PM |
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