New reports of a wheat shortage around the world have experts warning consumers to expect higher prices this fall. As this article form ABC News explains, the shortage in Russia has government agencies all over the globe scrambling for wheat in order to avoid the potential economic strain.
Wheat prices spiked Thursday after Russian Prime Minister Vladimir Putin issued a ban on exports as that country confronts grain shortages amidst drought and withering crops, a situation made worse by out-of-control wildfires.
The global ripple effect – other countries possibly hoarding food, grain supplies dwindling, commodities prices rising – is likely to impact a range of food companies and livestock farmers.
Meanwhile, in India, the government there is stockpiling wheat so aggressively that much of it is sitting outdoors under tarps and starting to rot, the A.P. reported Friday.
"A worldwide scramble for wheat supply is on," said Phil Flynn, commodities analyst at Chicago-based PFG Best. "Higher costs for wheat and grains may hurt the economic recovery because a few months down the road it means higher costs for everything from bread to cereal to meat as farmers reduce their herds."