Rising inflation has been concerning everyone as rising pieces and the cost of living seem to continuously increase with no end in sight. One of the greatest concerns for many is the growing cost of food, and the situation may only become worse as poor weather and continued geopolitical conflict in the east have caused a limited supply of basic crops such as corn, wheat, and soybeans.
Soybeans, in particular, have seen a price increase of 30% this year resulting from Russia’s invasion of Ukraine which left two of the world's leading producers out of commission. Soybeans can have a ripple effect throughout the food industry as they are used to feed chickens, pigs, cattle, and salmon, soybeans are also used extensively in cooking oils.
With strained global supply, other producers have had to pick up the slack. Many of these producers are located within the midwestern United States, unfortunately, with the majority of supply coming from the same region poor weather conditions can have a greater impact on production.
Weather experts have predicted that coming this week the Midwest will experience dry and hot conditions. While initially, this can be beneficial to crops, if the dry and hot weather conditions were to continue throughout the summer it could result in reduced supply across the country.
Source: Wall Street Journal