FarmPolicy

June 21, 2018

Commodities and Food: Prices and Supply- Farm Bill

Associated Press writer Stevenson Jacobs reported late last week that, ā€œWheat prices shot up Friday as investors bet that a mix of wet and dry weather in wheat-growing U.S. states will damage crops and tighten supplies of the grain used to make bread, pasta and other foods.ā€

ā€œExcessive dryness in parts of Oklahoma, Texas and Kansas is threatening to severely damage the hard-red winter wheat crop [historic geographical depiction, traded on the Kansas City Board of Trade], which could push prices for the grain back over the $10 a bushel mark for the first time since last month, analysts say. Meanwhile, heavy rain in Kentucky, Missouri and southern Illinois has flooded soft-red winter wheat crops [historic geographical depiction, traded on the Chicago Board of Trade], further driving prices up,ā€ the AP article said. (Note: hard red spring wheat is traded on the Minneapolis Grain Exchange; for more background on the different classes of wheat, click here.)

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