Wheat hits record as global demand depletes supply
http://abcnews.go.com/Business/story?id=4017581&page=1
Wheat prices hit record
People are demanding more wheat because there is very few supply. There is very few producers and based on the few product there is an increase in price for the wheat. Wheat prices reached a record when the merchants start to worried por the lack of worldwide. “United Nations called for urgent steps to help the poor nations that are being pummeled by shrinking food stockpiles and historic cost run-ups. Demand is rising in rapidly developing economies such as India and China. Analysts say consumers should expect that higher wheat prices will eventually work their way into the grocery aisle.”
Why did the market shifted?
There is a shift in supply.
There is an increase in supply for change in resource prices, taxes, related goods; however, there is a decrease in number of suppliers. There is very few producers of wheat and some of the problems include bad weather.
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