Wheat farmers profit from Russian wheat export ban
by Capital Public Radio, Steve Milne Posted on 8/6/2010
Aired 8/6/2010 on All Things Considered (Sacramento, CA)
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The drought has destroyed 20% of Russia's wheat crop. Prime Minister Vladimir Putin says the country needs to keep all of its wheat to prevent a rise in domestic food prices.
That's driving up global wheat prices and boosting profits for farmers like Larry Hunn who grows 400 acres of wheat in the Yolo County town of Clarksburg.
"It's definitely making the wheat market exciting. Prices are jumping around. I think most wheat growers in California are going to make money this year."
Hunn is just wrapping up this year's harvest. As for next year's crop…
"I've already presold some wheat into 2011."
That's how strong demand is since the Russian export ban was announced. Janice Cooper heads the California Wheat Commission. She says Russia was the lowest-priced provider in the world market.
"So if they're stepping out of the market there's going to be more opportunity for U.S. wheat including California wheat."
The Russian export ban takes effect August 15th and runs through the end of the year.
