Russia has announced a temporary ban on the export of grain, as predicted last week by The Grocer.
The news sent wheat prices to a 23-month high.
Vladimir Putin, prime minister of the world’s third-biggest wheat exporter, said the ban on wheat, barley, rye and maize exports would run from 15 August to 31 December.
The move represents an attempt to protect the country’s domestic supply, which has been decimated by wildfires and Russia's worst drought in half a century.
“I think it is advisable to introduce a temporary ban on the export from Russia of grain and other agriculture products made from grain,” Putin said.
Earlier this week commodities analysts said rising wheat prices could lead to a 5p increase on the price of an average loaf. But they were encouraged by the forthcoming US wheat harvest, which is expected to yield a bumper crop.
Russian wildfires push wheat price to two-year high (3 August 2010)
Bitter harvest: get set for 10% food price hike (31 July 2010)