Grain futures, particularly contracts on wheat, have displayed extreme concern about Russian exports in the past weeks. A relentless drought has sparked fires and fears that nation will have to import, rather than export, grain this year.
Today, though, wheat futures lost some ground. The Chicago Board of Trade wheat contract for September delivery slipped 13.6 cents to $6.794 per bushel, while the December delivery months lost 14.4 cents to $7.09 per bushel.
Alexander Belyaev, a Russian deputy agriculture minister, said that the nation still had 21.5 million tons of grain in stock, enough to cover domestic consumption and exports for the year.
“The country has sufficient resources to ensure that everything is favourable and reliable,” said Belyaev to a conference in Siberia, reported the Financial Times via the Interfax news service.
Russian meteorologists are predicting a minimum of two more weeks of scorching weather and drought, meaning that the extent of the devastation wreaked on Russia’s grain won’t be obvious until at least the end of August. It’s possible that Siberian harvests, which have not been hit as badly as those in the Black Sea region, could make up some of the deficit.
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