Recent News on Wheat Storage

So I'm not sure how many people will actually check this blog out, but I wanted to come up with a place where I could just note random things regarding food storage. I got an email from our Stake Preparedness Lady yesterday with the following email attached. Just so its easier to follow, her name is Kathy and this was her email:

I read that wheat was going to be extremely short this year, so I went to the Cannery on Friday last week to purchase additional wheat for our home storage. On previous trips to the Cannery, I was always able to purchase the quantity I desired. This trip, I was limited to four 25-pound bags. I placed an order for the additional quantity, however, was told that they were unsure as to whether they would be able to get it, and would have to call me. I just received the following article concerning wheat/flour at Maceys Grocery Stores. I thought you might be interested!

Kathy

-Below is a copy of that article involving Macey's Grocery Store-

During our department meeting at Maceys the store director gave us acopy of this letter and said that wheat prices will be doubling in thenext three weeks and the stores will be limited in what they will beable to get from the warehouse. Wheat bread will be about $4.00 a loaf soon. I have noticed in just a week the price of wheat has went up$7.00.
Flour AllocationFebruary 21, 2008To all our valued retailers,We will be allocating all the flour out of the warehouse due to thenational, and international conditions stated in the followingarticle. We are also being allocated by our suppliers. Please barewith us. As soon as the conditions become manageable we will lift theallocations.
World wheat prices are at record highs and show no signs of lettingup. The world wheat market is facing a perfect storm of factors thatare relentless in their ability to force wheat prices to never beforeseen levels. Since December wheat has risen by 66% on top of the 83%increase in 2007.
In early 2007 the markets rose as a result of competition between cornand other crops for planting acres. A large portion of the US corncrop was being diverted from food to fuel as governments mandatedincreased percentages of ethanol in gasoline and diesel fuel.
In early spring one of the biggest US wheat crops on record was beinghurt by excessive rain in the west and a drought in the east. Asyield and quality fell wheat futures rose further.
In early summer with US harvest complete, problems started to surfacein Europe . Severe heat and drought followed by excessive rain atharvest has forced many traditional exporters to import.
In January of this year the US Department of Agriculture revealed thatthe US Hard Wheat Crop was much smaller than the world hadanticipated. That has forced buyers to switch to Spring Wheat drivingthat market to historic highs and wheat stocks to critically lowlevels. No one knows how high the market will go or if or when itwill come down.
Flour prices have risen by 40% since mid December and we have beenunable to stop the rise as grain is not being offered for sale whilethe markets trade up the daily limit. Prices will change untilstability returns to the grain trading markets. There is no good newsin the short term. Supply will continue to shrink while demand growsand various commodities compete for available acreage. All grains arerising along with corn and oil seeds.