Drought and wildfires in Russia have driven the price of wheat to the highest in almost two years. Prices for the staple crop have jumped 50% since late June, topping $7 a bushel on the Chicago Board of Trade, BBC News reported.

A prolonged drought in Russia, one of the world's largest wheat exporters, has severely damaged crops, and wildfires have swept through some agricultural areas. The government has declared a state of emergency in 27 agricultural regions. President Dmitry Medvedev has mobilized army units to help emergency services battle the fires, according to Bloomberg News.

The rise in wheat prices "will have an effect on both food prices and food company profits," Martin Deboo, an analyst with Investec, told BBC News.

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