Prices for crops such as wheat, corn and soybeans have reached their highest level in eight years, prompting concerns that grocery costs could also rise in coming months.
Wheat, corn and soybeans are each surging to highs not seen since 2013. Bad weather is a major reason for the price increases. Dryness in the U.S., Canada and France is hurting wheat and corn. Meanwhile, excessive rain in Argentina is derailing the soybean harvest. There are also fears of a drought coming to America’s agriculture belt this summer.
At the same time, China is consuming the majority of the world’s grain supplies and is set to import the most corn ever as it expands its massive hog farms. Media reports state that China is planning to import one million metric tons of corn in coming weeks.
The higher crop prices are causing fears of food inflation because staple crops such as wheat, corn and soybeans heavily influence consumer prices for everything from bread and pizza dough to meat.
On the Chicago commodities exchange, wheat has climbed to its highest level since February 2013 at $7.395 U.S. a bushel. Corn prices are at $6.575 U.S. a bushel, the highest since May 2013. And soybeans are the most expensive since June 2013 at $15.3925 U.S. per bushel.
Related Stories
