This Year's Wheat Shortage Will Be Short-Lived

When it comes to bagels and pizza, not just any wheat will do. Hard spring wheat is a key ingredient for these doughy, gluten-loaded treats.This year, widespread drought in the U.S. Great Plains stirred supply fears, pushing up Chicago Mercantile Exchange spring wheat futures traded in Minneapolis to $8.19 a bushel on July 5, the highest level since June 7, 2013. The contract has since slumped to $6.68 a bushel, but it is still up 24% year to date. But gluten lovers and wheat bears need not fear that shortages will further drive up prices. Wheat production overall has been robust in recent years. And while the drop in spring wheat production is eating into supplies, the USDA estimates that at the end of the 2017-18 season, there will still be 131.21 million bushels on hand.