Global wheat prices have soared to multiyear highs as a heat wave sweeping across Europe and Asia slashes forecasts for this year’s harvest.
The price rise could potentially provide some relief to North American farmers, who have largely avoided such scorching weather, just as Chinese tariffs sap demand for other crops like soybeans.
Chicago wheat futures hit three-year highs Thursday, while a key European benchmark topped a four-year high. The price of Paris-traded milling wheat has leapt 33% so far this year. That is already translating into more expensive animal feed in some regions and could eventually mean more expensive bread.
Hot temperatures and drought typically stunt the growth of cereals and reduce their quality. With this in mind, the U.S. Department of Agriculture has forecast that global wheat stockpiles will fall for the first time since 2013.
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