Ukraine Bans Grain Exports - Romanian Projected Wheat Harvest Off 46% YOY, Barley 30% - FT

[hatrack]

European and US wheat prices surged yesterday after Romania said prolonged drought would reduce this year's wheat harvest to a four-year low. Romania expects its wheat harvest to fall by 46 per cent to 2.9m tonnes while its barley production crop is forecast to decline 30 per cent to 235,000 tonnes.

Euronext November wheat futures - the benchmark for the new crop - rose €3.25 to €166 a tonne. Traders said further drought could push prices towards €170 a tonne, the previous high during 2002-03 when the European crop was severely damaged by drought. Drought has also badly affected wheat production in Ukraine, which on Monday moved to introduce a ban on grain exports. In Chicago, July wheat rose 14 cents to $5.34¼ a bushel while July corn rose 2¼ cents to $3.86 a bushel.

Malaysian palm oil prices hit a record yesterday amid expectations that Indonesia would increase export taxes on cooking oil and proposals by India to cut import duty on vegetable oil. In Jakarta, the benchmark August palm oil contract rose 3.8 per cent to M$2,701 a tonne.

Brent crude held above $70 a barrel as a cyclone hit Oman, causing the temporary closure of a terminal shipping 650,000 barrels a day of oil. ICE July Brent rose 5 cents to close at $70.45 a barrel, while Nymex July West Texas Intermediate fell60 cents to settle at $65.61 a barrel.

EDIT

http://search.ft.com/nonFtArticle?id=070606000726

[phantom power]

1. peak food

[hatrack]

2. Interesting - the breadbasket of Europe bans the export of grain, and where is it reported?

Buried in the commodity news in the Financial Times.

[phantom power]

3. Yes, well, it's not a story with much human interest.

Just a commodity price influence. Not like it affects anybody's personal life. Say... the price of food.
:banghead:

[hatrack]

4. "I'm not worried about the farmers' strike - I get all my food at the grocery store"

Actual quote I heard with my own ears in the early 1980s on our local Action McNewshour.

[phantom power]

5. Wow. We really are doomed, aren't we.

[The2ndWheel]

6. Just ahead of his/her time

When Monsanto owns the DNA of food, farmers striking won't be on the list of problems.

[NNadir]

7. I hope this won't interfere with my plans to run my Hummer on grain alcohol.

Does this mean I need to buy a hydrogen Hummer?

[phantom power]

8. Baby seal biodiesel. Best alt-fuel investment I ever made.

[Nihil]

9. B*st*rd!

:spray: