FarmPolicy

October 23, 2017

Commodities and Food: Prices and Supply- Farm Bill

Associated Press writer Stevenson Jacobs reported late last week that, “Wheat 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.”

“Excessive 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,” 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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