Russia's Ban on Grain Exports Boosts Demand for U.S. Wheat, Vilsack Says
Wheat buyers including Egypt are contacting the U.S. government to see if additional American grain is available for sale as Russia struggles with drought, Agriculture Secretary Tom Vilsack said.
“There’s no question this is an opportunity for us that we are going to take advantage of,” Vilsack told reporters today at his office in Washington.
Wheat prices have surged amid dry conditions in Russia, Kazakhstan and the European Union and flooding in Canada. Russia, the world’s third-biggest producer, declared drought emergencies in at least 27 regions by Aug. 3.
Futures in Chicago jumped to a 23-month high of $8.68 a bushel on Aug. 6. Since then, they plunged 13 percent through yesterday, as investors slowed bets on further price gains.
Vilsack said he expects markets to stabilize as more information on the drought’s effects, including tomorrow’s USDA crop forecasts, becomes available.
“We’re not anticipating levels of shortage that would create extreme volatility in the markets,” he said.
To contact the reporter on this story: Alan Bjerga in Washington at abjerga@bloomberg.net.
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