Wheat Prices Jump on Russia and Global Production Worries.
By Farms.com Risk Management Team
Wheat futures prices jumped to their highest prices in more than a year with growing concerns about reduced production due to a severe drought and heat wave in the prime agriculture areas in Russia.
Production estimates continue to be cut by commodity analysts as the heat wave continues with temperatures over 100 degrees F reduce potential yields. The reduced yields could see Russia reducing the amount of wheat available for exports, which accounted for almost 20% of the worldâ€™s wheat exports.
New concerns over the lack of grain supply is pulling corn and soybean prices higher as livestock producers may have to switch feed components.
Moe Agostino, Senior Markets Analyst for Farms.com also notes that wheat production in Canada is also reduced this year with extremely wet weather. This will also be supportive of stronger grain prices.
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