Russia Lifts Wheat Export Ban; Prices Fall Sharply

“Wheat tumbled the most in a week after Russia, once the second-biggest exporter, said it will allow grain shipments to resume after a 10-month ban.

Russia won’t extend beyond July 1 its grain-export ban, implemented after the worst drought in 50 years slashed production, Prime Minister Vladimir Putin said May 28. Wheat prices have gained 75 percent in the past year, partly after Russia’s prohibition on grain exports started on Aug. 15.

“The drop today is because of Russia,” said William Adams, a fund manager at Resilience AG in Zurich. “This is a major development.” Russia being off the market last year caused shortages, he said.

Wheat futures for July delivery dropped 20.75 cents, or 2.5 percent, to $7.99 a bushel at 10:38 a.m. London time on the Chicago Board of Trade. The price was little changed for the month. Milling wheat for November delivery gained 0.9 percent to 241 euros ($347.50) on NYSE Liffe in Paris.”

Full article