The price of wheat gained on Wednesday, with wheat futures for September delivery climbing 12.4 cents to $6.65 per bushel. Futures for March delivery were even higher, at $7.224 per bushel.
In Russia, the government slightly loosened its ban on the export of grain, saying that it will allow some exceptions for international aid agreements and the supply of its “military, diplomatic and research staff” around the world, according to Bloomberg News.
It will also honor international agreements.
“This decree doesn’t open any loopholes for commercial shipments,” Ministry of Agriculture spokesman Oleg Aksyonov told Bloomberg. “Everything will be strictly controlled.”
Russia banned grain exports in response to the devastating heat and drought which seared much of the Black Sea region this summer, leading to deaths from heat exhaustion and raging forest fires that spread a pall of smoke across Western Russia. The fear of a global food and grain shortage has increased the price of food – about 5 percent worldwide, according to the United Nations Food and Agricultural Organization.
Still, experts are saying that the spike won’t reach the levels seen in 2008-2009 – the food price index measured by the FAO is still almost 40 percent below its peak in June 2008, according to the BBC.
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