Russia, which till last year was the world's No. 3 exporter, has stimulated demand for wheat from the United States, Europe and elsewhere by prohibiting grain exports.
After the downturn in the prices of wheat last week by 3.2% and this week by 16.5 % from the highs of last week, a further fall of 1.5% was posted this Friday.
This fall in the wheat price is being attributed to the late-session profit-taking and has no relevance to the concerns that the Black sea drought is likely to leave a third of the Russia's land bare until next spring. The winter grain crops too are likely to get affected as the drought and heat is likely to delay sowing. This in turn will add up to the losses and extend it to next year.
ABN Amro broker, Jeff Thompson said, "There was some profit-taking that took wheat down into the close. We had the bull numbers and the good run-up, so people were just taking it off before the weekend”.
As corn advanced by 1.4%, soybean prices are said to have risen 1.7% on vigorous export demand. The forecast of too much rain on the Canadian farms and floods in Pakistan too were the reasons behind the soaring up of wheat prices last week.