Wheat and Wheat Flour Prices Surge

Wheat prices at the farm level rose substantially in 2021, but the changes did not result in correspondingly higher prices for consumer products made from wheat. USDA’s Economic Research Service Monday reported cash wheat prices in Kansas City, Missouri—the market price that most closely reflects the prices mills pay for wheat—were up by more than 30 percent in 2021, from the same time in 2020. The Producer Price Index for flour milling—a measure of how wholesale flour prices change over time—also rose, registering an 18 percent year-on-year increase in 2021. In contrast, prices U.S. consumers paid for wheat-containing products, as measured by the Consumer Price Index, for cereal and bakery products, is projected up two percent. The year-to-year increase is below the overall inflation rate for 2021 and similar to the previous year’s gains. The data is in line with historical precedent in which commodity prices usually represent a small share of the consumer food dollar.

Related articles

Thursday and Friday, November 24th and 25th, 2022 Programs

***No video interviews for our holiday programs on Thursday and Friday. Markets were open for a shortened session on Friday as well. Below are links to our Thursday and Friday episodes with various interviews...

Biden Wants Rail Unions, Freight Railroads to Settle Contract Dispute Themselves

President Biden wants rail unions and freight railroads to resolve their long-running contract dispute themselves, without saying publicly if he’ll intervene or ask Congress to do so, barring an agreement. Biden Press Secretary Karine Jean-Pierre...

Wednesday, November 23rd, 2022 Video and Audio Program

Overall, trade on Wednesday was fairly quiet headed into the Thanksgiving holiday. We did find some late buying interest in grains on the session and in turn, slipped lower in cattle and hogs on...

Farm State Senators Vent Over High Diesel Prices 

High input prices helped fuel debate over the next farm bill at a recent Senate Ag Committee hearing. High diesel prices mean high food prices, as farmers and truckers struggle to pay an average...

USDA Invites Producers to Respond Online to the 2022 Census of Agriculture

The USDA mailed survey codes to all known U.S. ag producers with the invitation to respond online to the 2022 Census of Agriculture at agcounts.usda.gov. The ag census is the nation’s only comprehensive and impartial...

Latest articles

%d bloggers like this: