A wheat field burns in Russia during the heat wave of Summer 2010. EPA 18 March 2011 (AP) – Wheat prices rose Friday after Russia cut its forecast for this year’s harvest, renewing concerns that global supplies will tighten.

Deputy Prime Minister Viktor Zubkov said the forecast called for 84 million to 85 million tons of wheat to be harvested this year, compared to an earlier estimate of 85 million to 87 million tons. Russia was one of the world’s largest wheat exporters until last year when its crop was damaged by a drought that prompted an export ban. Zubkov said the ban remains in effect. In the U.S. dry conditions have created problems for the winter wheat crop in the Great Plains. While global wheat supplies are ample, stockpiles remain tight in the United States. Traders are speculating that global supplies may grow smaller, which could cause prices to rise. Wheat for May delivery rose 12.75 cents, or 2 percent, to settle at $7.23 a bushel. In other trading, corn prices soared as strong export sales raised expectations of improving demand. The U.S. Agriculture Department said Thursday that corn exports totaled 1.036 million metric tons for the week that ended March 10. That marked the sixth week out of the last seven that corn exports have topped 1 million metric tons, according to an analysis by PFGBest. The report led traders to expect that demand will remain strong because of short global supplies of corn, said Mike Zuzolo, president of Global Commodity Analytics & Consulting. …

Wheat prices climb after Russia cuts crop forecast via Open Mind