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This sharp rise in price is a definite area of concern for the United States. It could result in a grain shortage next year, which in turn would worsen the inflating food price altogether.
The dwindling wheat supply this year was directly linked to poor weather and climate conditions, mostly in Australia and Argentina. (Graph 3, second graph)Because of this, buyers are very concerned with accumulating and storing as much of the crop as possible at any cost. This enormous shortage can be seen through US exports. The United States wheat exports has already sold more than 90 percent of the 1.175 billion bushels the Department of Agriculture expects will be exported during the entire marketing year, which ends in June of 2008...
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