Russia increases grain prices

Russian prices for grain have increased after a statement by vice-premier Victor Zubkov on prevention of grain exports, the Financial Times reports.

Grain prices for corn increased by over 8% on October 11.

Zubkov said that the government would set fees for grain exports if the volume exceeds 24 million tons from July 1, 2011, to June 30, 2012. Russia has exported 10.7 million tons of grain, with the current rate the quantity may reach 18-19 million tons.

Analysts say Russia may export over 24 million tons.

Zubkov’s words stirred up traders. Futures for wheat increased in price by 8.8%, reaching $6.65 per bushel, corn - $6.45 per bushel, which is a growth rate of 6.6%. Experts believe that Zubkov’s statement may have a similar effect on the grain market as the ban on grain exports in August 2010, caused by fears over food shortages.