BUSINESS
10/03/2010 05:12 am ET | Updated May 25, 2011

Wheat Prices Rising on Russia Drought, But Panic Is Unjustified

The drought in Russia Ukraine and Kazakhstan has spurred the biggest one-month rise in wheat prices in 30 years leading to a state of near-panic within the food industry and warnings to expect a surge in grocery bills.Others are afraid that riots will break out as they did during the 2007-2008 global food crisis over shortages and skyrocketing costs.“This is the fastest wheat price rally we have seen since 1972-73 ” Gary Sharkey head of wheat procurement at UK-based Premier Foods told the Financial Times.Dmitry Rylko director of the Institute for Agricultural Market Studies said “The scale of the ...

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