MOSCOW (AFP) – Russia, the world’s third wheat exporter, Thursday banned grain exports for the next four-and-a-half months due to a record drought that has destroyed millions of hectares (acres) of its land.

Wheat futures shot up to new two-year highs on commodities markets after the sudden announcement from Prime Minister Vladimir Putin raised concerns about global grain supplies.

‘In connection with the unusually high temperatures and the drought, I consider it right to impose a temporary ban on the export from Russia of grain and other products produced from grain,’ Putin told a government meeting.

Russia earlier this week slashed its 2010 grain harvest forecast to 70-75 million tonnes, compared with a harvest of 97 million tonnes in 2009, owing to the worst drought for decades.

Last year, Russia exported 21.4 million tonnes of grain and observers had already warned that could be sharply lower this year owing to the drought.

The prime minister’s spokesman Dmitry Peskov said the export ban would come into force August 15 and remain in place until December 31.

‘We must not allow an increase in domestic prices and must preserve the headcount of our cattle,’ Putin said in comments broadcast on state television.

Putin signed a decree imposing the ban […]