Investors in wheat futures have seen prices continue to trend upward in recent days in light of a drought that has severely affected the Russian wheat harvest.
A report by Bloomberg cites a 51 percent increase in wheat prices since the end of June due to the situation in Russia, which has banned exports of the commodity to meet its own domestic needs. This decision could be felt far from Russia’s borders, with Bloomberg noting that the country was tied with Canada as the second-largest wheat producer in the world last year.
Bloomberg added that in the U.S., exports sold 4.6 percent more wheat the week ending August 12 than they did the previous week, amounting to 1.41 million metric tons.
Elsewhere, an Associated Press report quoted analyst Darin Newsom of Telvent DTN as saying “we’re not running out of wheat worldwide, it’s just where is the wheat located and where does it need to go as far as the largest buyers are concerned.”
The AP also noted that what for December delivery was up 13.25 cents on Monday to settle at about $7.25 a bushel.
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