If food looks expensive in the grocery store, maybe this is part of the reason: the price of wheat is up 82% in the last five years. Up 32% just in the last 12 months.
Corn is up 46% in the last 12 months. I've read that here in Oregon the wheat crop this year has been ruined by the late June heat wave. I don't know about elsewhere. In May the Wall Street Journal wrote:
"Corn has been one of the sharpest risers in the broad rally in raw materials that is prompting companies to boost prices for goods and fueling concern among investors that inflation could hobble the post-pandemic economic recovery."
But it's paywalled. This May 31st article in a midwestern publication wrote (but also paywalled)
"The good news for farmers: Corn prices are on the rise, up nearly 70 cents in the past three weeks to their highest level in nearly three years. The bad news: That spike is largely because of heavy rain and flooding this spring that have hampered planting across the corn belt and stoked fears about a drop in production."
So it's only good news if you weren't flooded out.... Climate change's extreme weather? Of course, heavy spring rains and flooding have happened before -- it's the risk of farming. But these days you have to wonder.
Here's the chart for wheat:
|Market price of wheat|