Wheat prices have jumped to a seven year high, according to ZeroHedge on June 30.
The price of your bagels and pizzas are about to rise as the cost of so-called ‘aristocrat of wheat’ – Hard red spring wheat – is exploding on the back of a worsening drought in the US High Plains.
Canada has also experienced drought- related decreased production.
As Bloomberg reports, the northern U.S. has beenplagued by dryness this year, and conditions for the domestic spring-wheat crop are their worst for this time since 1988. Now, traders are eyeing a smaller crop in Canada, too. The country’s government on Thursday cut its outlook for the total wheat acreage more than analysts expected and said canola plantings will top the grain for the first time ever.
The Wichita Eagle reports that some western Kansas farmers are reporting that much of their wheat was damaged or killed by the weight of wet snow during the end of May.