Aug 4, 2010
Russia is being told by a trader at the world’s biggest commodity trading company, Glencore, to halt the export of grain out of its country, according to the Financial Times.
The move comes as a result of rising wheat prices world wide, triggered by a series of environmental incidents including forest fires in Russia and an overly wet season in Canada. Those fires have left clouds of smoke billowing over Russia’s far east, Siberia.
The Glencore trader is trying to get Russia to ban exports because it will allow the company, and its wheat division, International Grain Company, to renegotiate all of its contracts. Conceivably, this could lead to some pretty sizable gains for the commodities giant. Glencore is not standing by its trader’s comments.
The Russian government is still anticipating a crop of 70 to 75 million tonnes, down from the 85 once hoped for. But Glencore says it will actually be closer to 65 million tonnes.
Check out how dramatically wheat prices have been moving in the last few months:
This article was posted: Wednesday, August 4, 2010 at 3:44 am