Rumours that the Ukraine will ban wheat exports sent prices rocketing, up £3.25/t , at close of play last week.

May 2013 London futures went to a high of £211/t  with November 2012 prices levelling at £204.25/t. Continued wheat exports and a poorer harvest, the Ukrainians are likely to try and stabilise the domestic market by closing exports out of the country.

According to the U.S. Department of Agriculture, the Ukraine’s total exports in the 2012/13 season was only likely to reach 4 million tons due to drought hampering production.

However, demand has accelerated faster than anticipated, with shipments expected to reach 5.3 million metric tons by November 20^th. This strong demand on exports is likely to exhaust the country’s exportable surplus and send domestic prices rocketing.

Agriculture representatives are rumoured to be meeting on November 15^th to discuss supplies and if they should be limited.

Russian Grain Stocks Down 26% Year on Year

The Moscow Times reports that Russia's wheat crop is down more than a quarter from last year as the harvest nears completion.

The country's main grain stocks are far below 2011 levels, but inventories near big population centers are less depleted, government data showed Friday.

Eyes are on Russia to see whether it can cover domestic needs and let exports flow on the back of the news that Uktraine will ban wheat exports.

President Vladimir Putin, who approved a decision to ban grain exports during a drought in 2010, has said export restrictions are not under consideration.

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