Wheat Price Highest Ever -- Shortages Possible

December 19, 2007

(AP) Wheat prices surged above $10 a bushel for the first time ever amid concerns that strong demand globally could result in a grain shortage in the United States next year.  Wheat supplies in the United States have dwindled this year as one wheat crop after another around the world has been damaged by poor weather, most recently in Australia and Argentina.
   Wheat prices crossing the $10 a bushel threshold won't immediately translate into a spike in retail prices for bread, cereal, cookies and other products, experts say. That's due partly because companies like Kellogg, General Mills, ConAgra and Cargill typically protect themselves from price volatility with long-term supply contracts.