by ANDREA PETERS
On Thursday, the Russian government placed a ban on all grain exports, in response to widespread crop failures caused by a severe drought. The measure will be in place from August 15 to December 1. Local authorities in each of the country’s 28 growing regions have declared states of emergency.
News of the export ban, along with fears that other countries experiencing extreme weather conditions could enact similar measures and the actions of speculators, sent world wheat prices skyrocketing. The cost of a bushel of wheat rose to $8.25 on Friday, the largest weekly gain in 50 years, according to the news agency Bloomberg. Experts are predicting it could soon reach $10 a bushel, a high not seen since March 2008.
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