WASHINGTON (Reuters) – World wheat supplies will be tighter than expected as a devastating drought in Russia and its neighbors erodes healthy stockpiles, but the U.S. Agriculture Department said on Thursday there was no reason for rising prices to stage a repeat of 2008′s historic surge.

In its August report, the Agriculture Department cut its world wheat production forecast by 2.3 percent to 645.73 million tons, its first estimate since Russia, normally the world’s No 3 wheat exporter, banned shipments to conserve domestic stocks.

WASHINGTON (Reuters) – Devastating drought in Russia and neighboring countries has reduced world wheat harvest prospects more than expected, a U.S. government report showed on Thursday, threatening to renew a blistering price rally that has revived memories of 2008.

While world wheat stocks will remain well above crisis levels seen in 2007/08, the Agriculture Department cut its world wheat production forecast by 2.3 percent to 645.73 million tonnes in its August report, its first estimate since Russia, normally the world’s No 3 wheat exporter, banned shipments to conserve domestic stocks.

WASHINGTON (Reuters) – The U.S. government is set to forecast a bigger decline in world wheat stocks and a modest drop in global production as Russia’s worst drought in over a century halts exports and threatens to whither the next crop.

After weeks of unrelenting heat forced Moscow to halt wheat exports for the rest of this year and sent prices surging more than 90 percent since June to a two-year high, traders are now looking to the U.S. Agriculture Department’s monthly report as the most authoritative gauge of market fundamentals.

WASHINGTON (Reuters) – A group of U.S. ethanol makers proposed a phase-out of federal subsidies on Thursday — the first such offer by a biofuels group, although the offer was tied to the creation of a more open market for the alternative fuel.

Growth Energy, a trade group that produces 30 percent of U.S. ethanol, presented its idea as Democratic leaders in the Senate sought consensus on an energy bill. Ethanol incentives worth $6 billion annually are due to expire at year’s end.

WASHINGTON (Reuters) – Democratic leaders on the U.S. House tax writing committee plan to push legislation to extend billions of dollars in tax credits for biofuels and renewable energy sources.

The draft legislation, a copy of which was obtained by Reuters on Thursday, would extend for one year the ethanol tax credit and a tariff on ethanol imports at a cost of nearly $3.8 billion.

WASHINGTON (Reuters) – Exporters, livestock feeders and ethanol makers are going through the U.S. corn stockpile faster than farmers can grow the crops, the government said on Friday.

Despite record crops in two of the past three years and another record within reach this year, the Agriculture Department estimated the corn carryover will shrink to the lowest level since 2006/07.

WASHINGTON (Reuters) – The U.S. Food and Drug Administration will recommend new limits on antibiotics use in livestock, including that the drugs only be used to cure or prevent disease, the agency said in a notice on Monday.

The FDA issued guidance on its latest thinking on the issue and said it would accept public comments for 60 days. Industry response will help shape its next steps, and the FDA did not set a timeline for action.

WASHINGTON (Reuters) – U.S. lawmakers hammered out a historic overhaul of financial regulations on Friday, handing President Barack Obama a major domestic policy victory on the eve of a global summit of world leaders.

In a marathon session of more than 21 hours, congressional negotiators agreed to a rewrite of Wall Street rules that may crimp the industry’s profits and subject it to tougher oversight and tighter restrictions.

WASHINGTON, June 25 (Reuters) – U.S. Senator Blanche
Lincoln credited common sense for helping forge a compromise on
her proposal to force banks to spin off their swap trading
operations, allowing them to retain the bulk of their books but
bar them trading commodities, equity and credit default swaps.

The plan was not as sweeping as Lincoln’s original proposal
to require banks to spin off their swaps desks, instead
narrowing the focus to those derivatives perceived as riskier
than the interest rate and foreign exchange swaps that make up
nearly 90 percent of the global swaps market.

WASHINGTON, June 25 (Reuters) – U.S. lawmakers hammered out
a historic overhaul of financial regulations as dawn broke over
the nation’s capital on Friday, handing President Barack Obama
a major domestic victory on the eve of a global summit devoted
to financial reform.

In a marathon session of more than 21 hours, legislators
agreed to a rewrite of Wall Street rules that will crimp the
industry’s profits and saddle it with tougher oversight and
tighter restrictions.