Wheat Prices Soar Russia Drought Export Ban

Wheat prices are at a two-year high and up 80% since June, as commodity futures markets reacted to the sudden ban on grain exports by Russia.

Prime Minister Vladimir Putin banned grain and flour exports to head off inflation following Russia’s worst drought in 130 years, caused by unusally high temperatures and fires.

The Russian export ban on grains affects wheat, corn, barley, rye and flour until the end of the year.

American wheat farmers may benefit this year. Despite drought in Russia, crop conditions elsewhere are favorable.

Global stockpiles of wheat are 50 percent higher than they were two years ago but expect higher Bread, Cereal and Beer prices anyway.