Aug
08
2010

Russian wheat withers and burns

Plenty of wheat (Moscow)
Plenty of wheat (Moscow)Courtesy Chris
Fires and drought has destroyed so much of the wheat in Russia, that Prime Minister Vladimir Putin issued a ban on wheat exports for the rest of this year. Last year Russia exported more 17.5 million metric tons of wheat.

Surplus wheat in India is rotting

Pounding monsoon rains threaten to rot 17.8 million metric tons of wheat in India that are stored under tarps outdoors. Why they don't sell it at today's high prices or give it to the starving poor is supposedly explained in this quote:

Exporting the grain would be politically explosive because food inflation has been in the double digits for months. The government buying less wheat from farmers in a country where over half the population makes its living off the land is equally untenable. Selling more at subsidized prices to the poor is off the table because it would add to a swelling fiscal deficit. Associated Press

Wheat speculation will lead to higher food costs and starvation

The United States is having a bumper yield this year and global wheat stockpiles are high. So why have Chicago wheat prices nearly doubled since June?

We fear that excessive speculation on wheat by bankers has led to the price soaring. Speculators have bought unusually high numbers of wheat contracts in recent weeks." ABC News

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