The new monster meme in the mainstream media is skyrocketing wheat prices. However, you’ll notice wheat futures fell heavily in the past 24 hours. Why? I told my wife to cut wheat from the grocery list this week.
Obviously, my family’s food purchases cannot bring down wheat prices. But in the global aggregate, if everyone thinks the same thing when they see Wheaties up 40% in a week, demand will plummet like the stock market in 2008.
This, of course, means other grains will become more expensive as demand shifts. However, if demand spreads across a variety of grains (e.g., rice, corn, etc.), the impact on your food bill will be much less than stubbornly grasping your favorite loaf of bread.
So, on this Friday I say make it Mexican night for dinner. Order the corn tortillas or tacos and don’t ask for corn with your beans, veggies, or meat. If that doesn’t sound appealing, take out Chinese and choose white or brown rice.
Fire may burn down fields of wheat in Russia, but we can at least try to tame flaming wheat prices.