Renewed flooding in midwest will drive up prices
Last Monday, I warned of the ill effects that flooding would have on our pocketbooks in the post Floods increase the chances of inflation. Unfortunately, we have seen renewed flooding in the Midwest this week as well. The total impact will not be clear until harvest.
Yesterday, Bloomberg News reported:
The Mississippi River crested at St. Louis yesterday at 37.3 feet (11 meters), below the record 49.58 feet 15 years ago, Accuweather.com reported. The flooding won’t dissipate quickly, Dooley said.
Tens of thousands of acres of farmland submerged in Iowa will swell the tributaries feeding the Mississippi, Dooley said. The river will fall at barely one-tenth of a foot per day. Even after the fields are no longer covered, the water beneath the surface has to find its way into waterways.
Perfect storm in grains market, The Age, 23 Jun 2008