However, a recent development out of Russia could prove to be a boon to producers in the U.S., as the European country recently announced it is banning the export of all grains. The decision came from Prime Minister Vladimir Putin, who said the nation is trying to bolster its reserves and keep food prices low.
Droughts have swept across parts of the country, leading to some of its land becoming unusable. However, Putin did say he may reconsider his decision in the coming months if this year's crop results outpace current projections.
The announcement has led to an increase in wheat futures, which may prove to be an advantage to farmers who could see better returns. However, it will also make things more difficult for consumers as prices rise for groceries.
In fact, Americans are already trying to cut back on their spending and increase the amount they save. Consumer spending remained relatively flat in June, as did incomes.
