Paul Griepentrog (c)copyright 2010 All Rights Reserved

With high temperatures and drought affecting Russia and Western Europe the Russian government has announced a halt to all wheat exports and has placed additional security at storage facilities.  Russia, the third largest wheat exporter in the world has asked Belarus and Kazakhstan to halt exports as well to prevent price increases in domestic supplies.

No such luck here in the US as speculators are driving prices converting unstable US dollars into commodities.  Wheat prices have risen $1.97 a bushel, or 42 percent, this month and are at their highest level since September 2008.  It’s the biggest gain for wheat contracts according to records dating back to 1959 according to the Chicago Board of Trade.  This is deemed even more unusual for prices to advance during harvest a time which is normally the low point in the yearly cycle. 

Further problems exist as Western Canada was not able to plant 13 million acres due to wet weather.  More