Drought concerns (Australia, El Niño) continue to drive up the price of wheat:
Wheat prices rose to a 10-year high on concern that drought will reduce supply from Australia, the third-largest exporter of the grain.
Prices earlier soared by their daily limit for a second day and reached the highest since June, 1996, in Chicago. Australia’s wheat output may fall below the record low of 9.6 million tonnes in 2002, said AgRisk Management, a Sydney-based forecaster.
“The drought situation in Australia is getting worse and worse, so it’s quite possible we’ll get a record-low crop this year,” said Brett Stevenson, of AgRisk.
Raises again the interesting question Roger Pielke Jr. asked a couple of weeks back:
What has a bigger economic impact, ENSO or ENSO predictions?