Ukraine announced yesterday that it would limit exports of corn and wheat in response to the punishing drought which devastated fields in the Black Sea region.
The government in Kiev will allow exports of just 500,000 tons each of wheat and barley, and 2 million tons of corn.
First deputy prime minister Andriy Kyulev said that the quotas were announced on Monday, the Financial Times reported.
Russia has already put a blanket ban on the export of grains through 2010, a move which lit a fire under grain futures over the summer. The move raised fears of a surge in global food prices and a repeat of the disastrous food crisis that gripped the developing world in 2007 and 2008.
So far, no such crisis seems to have materialized, despite the run-up in corn, wheat and soybean prices. The shortfall in supply has largely been met by U.S. farmers, who are on track to bring in record harvests for 2010-2011.
Some analysts, however, believe the harvest will fall short.
On the Chicago Board of Trade, corn futures for delivery in three months surged over 6 percent to 528 and 1/4 cents per bushel.
December wheat futures jumped 60 cents to 719 and 1/4 cents per bushel.
Soybean futures also rallied – soybeans for January 2011 delivery rose 69 and 1/2 cents to $11.44 and 1/2 per bushel.
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