Today’s Stat of the Day comes to us from the futures Wheat Pits…
In 2010 Chicago wheat posted its first annual gain in three years by rising 47 per cent, and many analysts expect grains to test all-time highs this year because of weather worries, robust demand and investor interest.
I wrote an article about wheat prices in August for Money Morning. The impact of exporter issues in Russia for example, and now flooding in Australia, is leaving the world supply of this basic food staple short. I would not be surprised if Russia keeps its grains to itself again in July, when Putin is to review the export ban.
If so, the US may be the only significant source of wheat exports for the world in 2011. This story is one that is worth watching regularly, as inflation and food staples take the front stage. This is going to push through inflation expectation in issues like grain raised livestock.