Droughts wilt wheat fields worldwide The worst droughts in decades are wilting wheat fields from China to the U.S. to Britain, overwhelming Russia’s return to grain markets and driving prices to the highest levels since 2008. Parts of China, the biggest grower, had the least rain in a century, some European regions are the driest in 50 years and almost half the winter-wheat crop in the U.S., the largest exporter, is rated poor or worse. Inventory is dropping 8 percent, the most in five years, Rabobank International says. Prices will advance 20 percent to as high as $9.25 a bushel by Dec. 31, a Bloomberg survey of 14 analysts and traders shows. Wheat as much as doubled in the past year as crops failed, spurring Ukraine and Russia to curb shipments and increasing the U.S. share of global sales by the most since 2004.
Gains in food prices are already near a record, according to the United Nations.
“In 32 years, I’ve never seen so many problems in so many places,” said Dan Basse, president of AgResource Co., a farm researcher in Chicago. “We’re concerned about the world story now,” said Basse, who expects wheat prices as high as $10 a bushel this year. ??– Bloomberg
Iraq completes two promising gas deals
BAGHDAD — Iraq on Sunday finalized deals with a pair of international consortia to develop two promising natural gas fields, the latest step by the war-ravaged country to tap its own resources to fuel its growing power demands. Iraqis have been struggling to rebuild their damaged electricity grid and improve power stations and lines. Blackouts are still common. Last summer, power shortages spurred demonstrations that turned deadly when security forces fired into crowds.
Turkey’s TPAO-led consortium will develop the 4.6 trillion-cubic-foot Mansouriya field in eastern Iraq. State-run Kuwait Energy and Korea Gas Corp. are teaming up with TPAO. The second consortium that groups Kuwait Energy with TPAO will develop the 1.1 trillion-cubic-foot Siba field in the south. – AP
