Russia's massive drought has forced the country to curtail its wheat exports. Russia is wheat exporter number 3. As a result wheat futures, as they are traded on world markets, rose nearly 80%. That is amazing and very scary considering the world's poor are pressed as it is.
The article suggests that this will not last.
Reuters: Wheat futures frenzy fails to infect cash market
...80 percent surge in wheat futures prices since June suggests a world in panic over supplies of the vital grain.
"With world wheat stocks being ample, and wheat stocks in the U.S. likely to be the highest in 23 years this season, we are not seeing any real import demand at our doorstep..."
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