Spring Wheat Used In Pizza Crust Nears 14-Year High As Floods Devastate Northern Plains
U.S. spring-wheat futures are nearing the highest level since 2008, as the Northern U.S. Plains are plagued with devastating floods that prevent farmers from planting in the high-producing crop region.
Blizzards, winter storms, high winds, and extreme flooding battered the Dakotas and stalled plantings in April, raising concerns about shrinking crop yields as prevent plant dates for North Dakota are at the end of May.
Welcome to North Dakota #flood2022 pic.twitter.com/DYrWqoHa4G
— AGBULL (@AgBullMedia) April 24, 2022
Because of wet conditions, farmers cannot work their fields, which means yields will decrease everyday wheat isn't planted.
"The spring-wheat crop should continue to see planting delays with heavy rains, and cold weather in the forecast," commodity research firm The Hightower Report said.
The most-active spring wheat futures contract increased more than a 1% to $12.02 a bushel, nearing March's peak and closing in on the highest level since 2008. Prices have more than doubled since the virus pandemic low. $4.90.
Spring wheat is used in specialty items like rolls, croissants, bagels, and pizza crust. Money managers are holding a record net-long position due to supply fears following the Russian invasion of Ukraine, disrupting global wheat production.
Compound the U.S. drought of 2021, the Ukraine crisis, and floods in the Northern U.S. Plains, the world is even more dependent on the Northern hemisphere for major food needs. If the U.S. experiences production woes this crop season, if that's because of weather-related issues or simply not enough fertilizer, then there's an increasing risk a global food crisis could become more pronounced by the end of the year or into the next.
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