Friday, August 13, 2010

How Bad Was the Russian Heat Wave?

The recent Russian heat wave was the worst in about a thousand years, says the head of the Russian Meteorological Center.

He also says that Russia's grain crop may decrease by at least 30% compared to last year.

Russia's wheat production is about 50 Mmt/yr, so their grain crop will be reduced by about 15 Mmt (=550 M bushels). Even at pre-drought prices (about 450 cents/bushel), that's a loss of $2.5B.

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