Global grain markets are at a pivot point, with prices finally starting to ease after a surge earlier this year.
Climate change, however, has the ability to make extreme weather events more likely to occur and more severe, impacting U.S. crop output.
Bloomberg reports that some producers have seen intense floodwaters submerge acre after acre this spring. Scorching heat in the Midwest may have caused the loss of the top end of the yields and productivity.
Russia’s invasion of Ukraine has stifled exports from the region. The disruption has sent crop futures to near-record highs, with stockpiles extremely tight.
That’s adding to rampant food inflation and raising fears of global grain shortages.
Markets have finally started to calm in recent weeks on optimism that key producers like Australia and the U.S. will reap harvests large enough to help replenish shortfalls. That means every bushel counts.
