August 2, 2007

Production problems in Europe keep world grain prices high

World prices of grains remain high due to some production difficulties in Europe due to drought occurring at some EU countries.

Problems on grain farms are also happening in the United States due to wet weather. US wheat futures prices are around 650 cents cents a bushel. Quality glitches are also afflicting Russian grains. 

Emerald Group of Australia's Mike Chaseling said these factors have been driving the world grain prices at the peak.

Chaseling said Russian wheat prices out of the Black Sea are reportedly priced at as high as US$280 FOB (freight-on-board) at the moment, even a little bit higher and even the Jordan market paying as much as US$355 CNF for wheat recently.