Russian ban pushes barley prices up

Russia banned its farmers from exporting wheat a few weeks ago, worried about food security because drought and fire had wiped out nearly a quarter of the nation’s crop.

The United States has taken up the slack, exporting more corn and barley for stock feed. American grain analyst Dan Basse says China is also seeing the highest prices on record for rice, wheat and corn, and cotton prices are also surging.

"It’s all dislocation of supply. Once the Russians backed out of trade, a lot of people were caught short and didn’t know where to turn," he says. "Buyer positions in the northern hemisphere and supplies of grains are turning to the United States.

"Now the Canadians will come on (and supply grain) and we’re hopeful in November-December that the Australians and Argentina join us and try and get some of this grain to end grain users."

[Source: ABC Rural]