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Wheat Prices Driven By 'Panic Buying'

25 August 2010

AUSTRALIA – A commodities expert has suggested that 'panic buying' of grain is to blame for rocketing wheat prices amid the global uncertainty after the recent European weather woes and Russia's announcement of a ban on exports.

Following the desperate conditions across parts of Europe, which forced Russia into halting its grain shipments, prices of wheat jumped dramatically worldwide, which was all good news for Australian producers, ABC News reported.

Peter Rizzo, managing director of commodities house FC Stone Australia, told the news provider that he believed panic to be the reason behind the dramatic jump.

"There is a tremendous anxiety globally … about food security and you know the disruptions in supply that come from … a significant drought in Russia … are going to have great effects in a world where we now can dial in on cable weather events [from] our living room," he said.

Meanwhile, ABC News reported this week that recent world events had also been cited as reasons for the current high price of sugar on US markets, which currently stands at its strongest position for more than five months.
 

TheCropSite News Desk



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