August 6, 2010 - 8:31am
Wheat Futures
I would suggest that members think about stocking up on flour, soon. If anyone has been looking at wheat futures, the price of wheat has surged worldwide, and I mean surged. It has gained more in the last couple months than any commodity on the exchange.
Get ready for sticker shock like you haven't seen before.
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I remember the price rise in durum wheat flour that made pasta price spike 3-4 years ago.
LINK
Then go to the article Russia Boosts Grain Security
Mini
The Kansas Wheat Commission announced that this years harvest was all but complete around 20 July. It's been recorded as the fifth largest in the history of the state, with very good quality, and around 11.6% protein levels.
The harvest size of Kansas is usually enough to feed the wheat needs of the 50 states of the USA but it wouldn't surprise me if the hedge traders are already descending like vultures on this year's crop.
and not only will flour be expensive, I believe that this will be used as an excuse to increase the price of bread or more chemicals will be added to the bread dough to cut down on the flour used. Here in HK breads from some bakeries are way too light and airy and lack substance.
Wheat slumped four percent. See Business Week article dated August 8, 2010.