Due to flooding in the upper Plains states, flour prices have escalated drastically since mid-March, with wheat futures up nearly 20 percent, according to a June 13 article in The Times Tribune.
Wheat prices, which affect a range of products including bread, bagels, pasta, crackers and cereal, reached a 2 1/2-year high in late May before settling. Even so, July prices for red spring wheat closed at $9.56 a bushel June 21 on the Minneapolis Grain Exchange, up from about $8 in mid-March. Ongoing flooding in the upper Midwest continues to delay wheat planting and add further market turmoil, according to The Times article.
Additionally, inflation is expected to drive food-at-home costs this year up 3 to 4 percent, with a 3.5 to 4.5 percent jump in cereals and bakery products, according to the U.S. Department of Agriculture. Inflationary pressures are being driven by high fuel costs and a continued weak dollar.
Read the entire article here.