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A global food price index rose 1.4 percent to near a two-year high, led by record gains in butter and wheat. Wheat futures surged after hot, dry weather in the US and Europe.
Dairy export availability also pushed up butter and cheese prices.
Weather-driven wheat gains raise feed grain costs, while dairy price increases affect milk-based feed ingredients. Buyers face higher input costs across the feed complex.
bloomberg.comAgnieszka de SousaJul 6, 2017After 1,072 past bullish weather events, Wheat (SRW) moved a median +0.2% over 5 sessions (55% higher; middle half -1.4% to +2.3%), and +0.3% over 20.
After 32 past bullish weather events, Milk (Class III) moved a median +0.1% over 5 sessions (50% higher; middle half -0.7% to +3.4%), and +3.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
