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As per a WSJ report wheat prices at the commodity exchanges jumped by 17% last week following extreme wet weather in the mid west United States and near drought conditions in western Europe. Whereas farmers in the US and France who are the principal exporters of wheat to the middle east and north Africa stand to gain, the rising prices of wheat could be the last straw on the could be the last straw on the camels back, for the poor countries already ravaged by inflation and internal strife and food riots.
In absence of ban on Russian wheat exports last year following the 2010 drought in Ukraine and the Russian wheat belt prices of wheat in these nations have nearly doubled during the last six months. The poor population of Africa are heavily dependent on wheat as a staple food in absence of livestock and other more expensive supplements afforded by the richer nations. The Arab revolt that started over six months ago were sparked following price hikes and food riots. Now with supplies of US and western Europe likely to be affected the situation could quickly go out of control in the Eurozone nations and the developing world
As per a WSJ report wheat prices at the commodity exchanges jumped by 17% last week following extreme wet weather in the mid west United States and near drought conditions in western Europe. Whereas farmers in the US and France who are the principal exporters of wheat to the middle east and north Africa stand to gain, the rising prices of wheat could be the last straw on the could be the last straw on the camels back, for the poor countries already ravaged by inflation and internal strife and food riots.
In absence of ban on Russian wheat exports last year following the 2010 drought in Ukraine and the Russian wheat belt prices of wheat in these nations have nearly doubled during the last six months. The poor population of Africa are heavily dependent on wheat as a staple food in absence of livestock and other more expensive supplements afforded by the richer nations. The Arab revolt that started over six months ago were sparked following price hikes and food riots. Now with supplies of US and western Europe likely to be affected the situation could quickly go out of control in the Eurozone nations and the developing world
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