Yes, there is a terrible drought in Russia, much worse than usual, although their wheat growing region which is experiencing this drought is considered to be an agriculturally risky area which experiences droughts every two out of five years.
The world is not short of wheat stocks. Back in May the story was of the world being awash in wheat with a global stocks level the highest in twenty years. The pricey U.S. export market with the high dollar had few opportunities. Now, it does. I did a very in-depth wheat production article then. Wheat stocks are in continual flux because it is harvested somewhere around the world every month of the year.
However, the price, due to hyped up trading has increased 50% since June. This has been a perfect money-making opportunity for Ag commodity traders, and should call into question the act itself, based upon the food security issues that come with it, especially for the poorer food-importing nations. As a result, many are concerned today.
When I do an article I tend to get carried away, but I'm just going to keep this one simple as it is so prevalent in today's news. To monitor the situation keep up with the FAO reports here.
To the small investor who is intrigued, beware. The big money has already profited greatly from the situation. The Russian ban of exports, announced yesterday had been highly anticipated.