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MENAFN - - 20/03/2012

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(MENAFN) Russian Prime Minister Vladimir Putin announced there will be no limit on grain exports this year, a decision that lead wheat prices to plunge 3 percent, AP reported.

Russia had been one of the leading exporters of wheat and other grains until 2010 when it banned exports after a drought caused significant crop damage. Wheat prices rose sharply at the time because of concerns about global supplies. The ban was lifted last May.

Putin's First Deputy Viktor Zubkov expected this year's exports to hit 27 million tons. That compares with 21.4 million tons exported in 2009.

The decision also could harden the competition for US wheat, which investors have been expecting to see greater demand because it's the cheapest in the world, and speculations that some crops in Europe were damaged by a cold winter.

 






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