Russia is experiencing "the worst heat wave since record-keeping began" more than 130 years ago. The Washington Post reports that this extreme weather is causing wildfires "that have engulfed 196,000 hectacres (about 484 acres)" so far and have destroyed one-fifth of Russia's crop. Prime Minister Putin said that he "would decide after this year's harvest whether to extend the ban, which covers exports from Aug.15 to Dec. 15."
Wheat prices have risen 50 percent since June, but according to experts, wheat prices in the US are not likely to remain high due to a "bumper crop" which could "put American farmers in a position to benefit from the low supplies elsewhere."
While Russia's ban raised concerns about a possible food crisis similar to the crisis in 2008 that caused "riots from Bangladesh to Haiti to Mozambique," experts say that there is no reason to fear another global shortage largely because many countries have surplus grain stored. The Food and Agriculture Organization (FAO) said that while the "food-price index is higher than it was a year ago, it is still 22 percent lower than its peak, in June 2008."
To read the New York Times story, click here.
To read the Washington Post story, click here.
Posted: 08/06/2010
