Wheat prices rise nearly 80 percent since June 2010Posted: August 7, 2010
It is not a repetition of the 2007-08 food crisis yet but the current wheat rally – the fastest in almost 40 years – could soon transform into a full-blown price spiral, spilling over on to other crops such as corn and pushing up retail prices worldwide. The 2007-08 crisis, the first in three decades, saw the cost of agricultural commodities surge to record highs and riots in countries from Haiti to Bangladesh. It pushed wheat prices to an all-time high of more than $13 a bushel in the US. On Thursday, wheat in Chicago traded at nearly $8 a bushel, after rallying by 80 per cent since mid-June.
It’s just a matter of time before higher prices show up at your local grocery store.