Former Soviet Wheat Producers Face Shortfalls

Russia's Volga, Krasnodar and Black Sea regions — its grain belt — have experienced seven weeks of heavy rain. In the past week, major flooding left 171 dead and more than 12,000 displaced in the Krasnodar region. Russian President Vladimir Putin traveled to the area and assured citizens that the state would help those affected.

Russian grain transporters have said roads in the region are mostly washed away but are quickly being repaired. The port of Novorossiysk, the country's largest grain-exporting hub, closed for several days but has resumed wheat exports. Port authorities also said Novorossiysk's grain terminals are fully stocked, so the port can export those stocks while it waits for roads to be repaired and new grain supplies to arrive.

This is the latest in a string of problems for this year's wheat production in most of the major grain-producing countries in the former Soviet Union. Traditionally, grain producers in this region act conservatively when production is hampered, as they did in the second half of 2010 when they cut off all grain exports. But other countries — namely the United States and several members of the European Union — that have helped to make up for a lack of wheat exports from the former Soviet states are struggling with supplies. The global wheat market is not yet at a breaking point, but it is facing greater strain.