The price of wheat on the world market is increasing proportional to the unusual changes in the climate in wheat producing countries ,as well as the unending rain in Canada. The drought in Russia and Kazakhstan plus the torrential rain in Canada have combined to make the price of wheat aim for the sky.
The situation can be explained by the downward revision of the forecast for this year’s wheat harvest in the major producing countries. It should however be pointed out that despite the acute weather conditions, wheat harvest in producing regions has not been too bad. For example, Russia will not only meet internal requirements, but can also increase the quantity for this year’s grain export, Arkadia Zlochevsky, president of the Russian Grain Union believes.
"This year, the country cultivated 48 million hectares of wheat fields, out of which about 9 million hectares dried up. Therefore, there is no truth in the rumour that Russia will suffer acute shortages in grain this year. The country’s Agriculture Ministry says that Russia will harvest some 85 million tons of grain in the current season, meaning that internal requirements will be met even if fewer than 85 million tons of grain are gathered," assured Zlochevsky.
"It should also be remembered that Russia has a record reserve of about 24 million tons, according to the July figures. In principle, the country has the potential to meet even next year’s internal needs and still have enough left for export," said Zlochevsky. "Wheat producers are extremely happy that they are getting more money for their produce. The price of grain was so low in the previous harvest season that the damage can be compared to the expected losses from the current drought," declared Zlochevsky.
"The population is almost unaware of happenings on the global wheat market; in previous years, wheat’s contribution to the price of a loaf of bread was 10 per cent, meaning that the price of bread in Russia will remain unchanged," Zlochevsky has assured. “At least, in the short run," he added.
The forecast for the long term prospect is not a cheerful one, he warned. Experts of the Organization of Economic Cooperation and Development, OECD and the UN Food and Agricultural Organization, FAO predict an increase of 15 to 40 per cent in the price of agricultural produce in ten years’ time. The reason will be because of higher demand for agricultural items by developing countries and producers of bio-fuel. In the circumstance, farmers are turning their attention to companies, lobbying for the use of genetically modified plants, which can become the main guarantee that harvest will depend less on the vagaries and the caprice of nature.Meanwhile, the production of wheat with “gene scorpion”- the name given to drought resistant plants in Russia, is prohibited. However, more people are now supporting the introduction of GMF, and they speak about the benefits of the technology and its relative cheapness.
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