All set for wheat prices to skyrocket again

Perhaps, you remember last year when Russia had a severe drought, and big wildfires during the summer. This caused the Wheat prices to skyrocket, and Russia decided not to export any wheat. This was extremely tough for Eastern European nations, and the Middle East, and North Africa that normally bought Russian wheat. In fact, it caused the commodity to rise so quickly, that it severely impacted some of the poorer nations and North Africa.

Is this why the people decided to rebel against their governments? Is this what brought about the Arab spring? Well, not exactly, but it was a major component, it appears that it still might be still, because this year Russia is experiencing more wildfires, and an extended drought. One could say; here we go again with future high global wheat prices. This is good for American farmers, but in the United States we’ve had a little bit of a drought situation in many states as well.

None of that bodes very well for starving Somalians, or poor nations where people make less than a dollar a day and won’t be able to afford the luxury of going to bed on a full stomach. With all this known one could ask if the Arab Spring will continue through summer, and into next year. It’s quite possible. In fact there’ve been some rather unfortunate issues recently in the news, and although most people don’t pay attention to the global wheat futures market, wheat prices, or Russian agriculture – it is duly worth noting.

There was an interesting article recently in TerraDaily Online News which was titled; "Russia battles fires amid tropical heat," by Staff Writers in Moscow (AFP), which was published on July 28, 2011. The article stated;

"Russia on Thursday sweltered in abnormally hot summer weather as the emergency services sought to control expanding countryside blazes to prevent a repeat of last year’s devastating wildfires.

The central city of Volgograd was Russia’s hottest city with temperatures hovering above 40 degrees Celsius (104 Fahrenheit) for the past few days, hotter than Cairo, Tashkent, Tehran, and New Delhi, weather forecasters said."

Is this due to global warming? Well, I suppose that those who believe in the CO2 climate change theory would wish you to believe that. But the reality is that there are 20 and 50 year cycles of droughts, and Russia has experienced this before in the past. The difference now is there are more Russians now vying for the same water supplies, and a severe drought which is reoccurring.

If Russia decides not to export their Wheat again, that could cause quite a calamity as we prices rise globally due to supply and demand. In essence, there are some tough times, for some already tough people in some very poor nations. Indeed I hope you will please consider all this and think on it.
courtesy : EzineArticles.com

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