Tag Archives: grain

Stacy Summary: I do laugh when shriekers and employees of the House of Saud drop by, “stick to finance, babe, don’t write about climate change.” As if the two can be separated.

• Russia’s Drought Raises Bondholder Risk

High temperatures, which rose to a record 37.4 Celsius (99 Fahrenheit) yesterday in Moscow, have damaged 32 percent of land under cultivation and forced Russia to declare states of emergency in 23 regions. Grain prices may double this year because of the drought, according to the Grain Producers’ Union.

Inflation may quicken to 8.1 percent by the end of December, compared with the government’s annual forecast of 6 percent, according to Yaroslav Lissovolik, Deutsche Bank AG’s head of research in Moscow. That will put pressure on Bank Rossii to raise its benchmark rate by year-end for the first time since December 2008, said Natalia Orlova, Moscow-based chief economist at Alfa Bank.

Higher rates “may cause a correction in short-term sovereign bonds and, later, in long-term sovereign bonds,” said Evgeniy Nadorshin, senior economist at Trust Investment Bank in Moscow.

Peat fires cover Moscow in smoke (photo from Nasa)