Smaller crops, increasing demand and inclement weather are pushing up prices for agricultural staples like corn, wheat and soybeans, Bloomberg reports.
While the world economy strives to bounce back from its deepest recession in 70 years, global inventories are slimming and food prices are soaring, according to a U.S. Agriculture Department report. Heavy snowfall and low temperatures in the U.S. and Canada are helping push up prices as are drought conditions in areas of Russia, the Ukraine and Europe.
"There is not one crop you can point to that is without supply problems," Steve Nicholson, a commodity procurement specialist at International Food Products Corp. in St. Louis, told Blomberg. "Production is not keeping up with demand, exacerbating the global food crisis."
Shortly after 2:30 p.m. on Wednesday, soybean futures rose 1.17 percent, a 1.675 cent gain to $14.51 per bushel. Corn futures moved up 3.6 percent, a 0.2425 cent climb to $6.98 per bushel. Just before 2:30 p.m., wheat futures increased 1.34 percent, a 1.175 cent climb to $8.86 per bushel.
Corn recorded its top price of $7.9925 per bushel on June 27, 2008. Soybeans' top price of $16.3675 per bushel was July 3, 2008. Wheat's top value of $13.495 per bushel was on February 27, 2008.
Agricultural staples soar as global economy recovers
Corn futures, like those for soybeans and wheat, are soaring due to inclement weather, smaller crops and increased demand.