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Despite near record prices, Russian farmers reduce planted wheat acreage as a ban on exports...

Despite near record prices, Russian farmers reduce planted wheat acreage as a ban on exports forces sales internally at a 22% discount - more fuel to those who believe confused government policy, as much as surging demand, causes higher prices. JJG +0.1%, JJA +0.6%.
Comments (8)
  • Central planning only works for the central planners.
    7 Mar 2011, 09:56 AM Reply Like
  • Speculative piles of crap. Wheat is a commodity that supply can be doubled in no more than a year. Oil on the other hand...there's a struggle.
    7 Mar 2011, 10:05 AM Reply Like
  • "confused government policy" an oxymoron if ever there was one
    7 Mar 2011, 10:07 AM Reply Like
  • By calling that an oxymoron aren't you saying that the government is never confused? I would guess you believe that government policies are normally confused, which would mean that is not an oxymoron.
    7 Mar 2011, 10:45 AM Reply Like
  • Good point. It's more of a SNAFU.
    7 Mar 2011, 10:46 AM Reply Like
  • Good point...................
    7 Mar 2011, 10:47 AM Reply Like
  • Diesel fuel is 30% higher than last year and Russian Wheat prices are 22% below world wheat prices. Apparently, Russian policy is one that makes the farmer pay for the rise in wheat prices. How stupid is that? Of course, they're going to cut production. Duuuh! If the Russian government wants to keep Russian wheat prices lower thus benefiting consumers, they need to subsidize with all their energy revenue.
    7 Mar 2011, 10:31 AM Reply Like
  • export tariff would also work. Set it based on inventory levels. The smaller the inventory the higher the level.
    9 Mar 2011, 11:22 PM Reply Like
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