The new normal (part 10): Kazakhstan’s alarming drought, global grain prices rising

Central Asia is feeling the heat, and “alarming” drought in Kazakhstan has driven up flour prices in that country 25%-40%. What prices are soaring:

Worldwide, wheat prices have soared 50% since June, pushed up by drought news and poor harvest predictions from Russia, the world’s third largest wheat exporter.

As the Sydney Morning Herald notes, global prices for grains are rising in response to weather disasters:

Global grain prices are on the increase and unlike many of the daily gyrations in financial markets, these spasms will be felt by Australian households – and soon.

Victorian egg farmer Brian Ahmed says the cost of wheat used to feed his chooks has risen by almost half, or $100, to $316 a tonne in just the past fortnight.

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