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Soaring Wheat Prices are Raising Bread Costs

(Bloomberg) — Wheat prices have surged from the U.S. to Russia, hitting a record in Europe and raising bread costs all over the world. And there may not be much relief soon.

The crop — grown on more land than any other — was hit by droughts, frost and heavy rain this year in key exporters. That’s curbed supplies used in everything from pizza crusts and French baguettes to Asian noodles and African couscous, pushing benchmark prices in Chicago to an almost nine-year high.

That’s not just threatening higher grocery bills — it’s giving central banks a bigger inflation headache and risks worsening global hunger that’s already at a multiyear high. The worry is that big crops looming in Argentina and Australia won’t fully ease tight supply, and fields elsewhere are only just being planted.

“We could see further upside,” said Carlos Mera, head of agricultural commodities market research at Rabobank in London. “The higher the price goes, the more fear there is in the market and the more panic buying.”

Wheat in Chicago traded lower on Tuesday, after touching the highest since December 2012, while Paris futures reached a record 297 euros a ton before closing at 292.75 euros.

Here’s what’s driven the rally:

Dwindling Stockpiles

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5 thoughts on “Soaring Wheat Prices are Raising Bread Costs”

  1. Of course, COSTS are rising . They don’t go down did working people just think the Market would adjust itself to their 20 year outdated wages lack of education and contempt for a changing Economy they have found themselves left behind in ? The American DREAM is not nostalgic and backward it’s forward and evolving. We don’t live in Mayberry anymore. If people were really that concerned about it they would be improving themselves their skills and marketability and not just living and breeding like it’s some sanctioned gift from a God they will never meet.

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