Russia’s ban on grain exports boosts prices in North America

Farmers celebrate 80 per cent rise in one month

Russian Prime Minister Vladmir Putin has helped boost the fortunes of North American wheat farmers by banning exports of grains after August 15. A drought has caused a shortage of wheat in Russia, which is normally the world’s third largest exporter. The UN recently announced that wheat production in 2010 will be lower than originally forecast. In anticipation of a shortage, wheat prices on the Chicago Mercantile Exchange have jumped 80 per cent in the last month. They shot up by 60 cents per bushel Wednesday, the maximum allowable rise in one day. While some farmers are celebrating, the high prices aren’t good news for all Canadian wheat farmers. Severe floods prevented many Prairie farmers from planting this spring.

CBC News

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