Soaring wheat prices have Canadian bakeries struggling, farmers rejoicing and customers digging deeper at the till to pay for their bread and pasta purchases.
The price of flour has been climbing steadily over the last year.
(CBC) The price of flour has doubled in the past two months as weather problems, including two years of droughts in Australia, have depleted wheat stocks to lows not seen since the 1970s.
Also contributing to the shortage is the flux of grain farmers switching to other crops, such as canola or corn, that produce biofuels.
"It's a very, very tight situation," said Canadian Wheat Board analyst Bruce Burnett. "World production has been under consumption in the last couple of years, so we have been drawing stocks down … and we've finally hit levels that have made the market very, very concerned about supplies and rightly so."
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(CBC)
Also contributing to the shortage is the flux of grain farmers switching to other crops, such as canola or corn, that produce biofuels.
"It's a very, very tight situation," said Canadian Wheat Board analyst Bruce Burnett. "World production has been under consumption in the last couple of years, so we have been drawing stocks down … and we've finally hit levels that have made the market very, very concerned about supplies and rightly so."
Full story
Are you surprised that in Canada we have a shortage of wheat?
More...
