Russian farmers need rain to help ensure the seeds they plant now result in a good harvest next spring.
Last week we profiled Vladimir Klevtsevich, who said he was rolling the dice on rain. Acknowledging his big risk he was simply planting seeds in dry soil in the hope hell get some rain, or at least find enough moisture deep in the earth, to form a decent crop.
Those kinds of bets are looking riskier with each dry day. Less than 30% of the land set aside for planting winter crops has gotten enough rain, Dow Jones Newswires reports, citing data from Russias Hydromedcenter weather forecasting service. And the services says things arent looking good.
On the whole, the situation will not change very much between now and the end of the month, a spokeswoman for the service told Dow Jones Newswires.
Fears about supply shortages and government hoarding have intensified since the drought hit former Soviet republics, particularly after Russia banned wheat exports. The world is now closely watching Russian farmers progress in planting the next crop, hoping that a stronger crop would lead to an early lift on the ban.
The concerns have sent prices for wheat and other crops up sharply in recent months, and Monday wheat got another boost, rising 1.3% in Chicago trading. Now is the crucial planting period and MarketBeat will be regularly checking in with our Russian weather experts over the next week or so.
GNC Price at posting:
$7.06 Sentiment: None Disclosure: Held
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