LUBBOCK, Texas - If you think the cost of gassing up your car is outrageous, wait until you need to restock your pantry.
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The price of wheat has more than tripled during the past 10 months, making Americans' daily bread — and bagels and pizza and pasta — feel a little like luxury items. And baked goods aren't the only ones getting more expensive: Experts expect some 80 percent of grocery prices will spike, too, and could remain steep for years because wheat and other grains are used to feed cattle, poultry and dairy cows.
"It's going to affect everything ... impact on every section of the grocery store," said Michael Bittel, senior vice president of King Arthur Flour Co. in Norwich, Vt.
Consumers such as Maria Cardena feel trapped by the prices. She said the bread she buys has jumped from 69 cents a loaf to $1.09 in recent weeks.
"You have to buy it," said the 29-year-old mother from Lubbock, Texas. "You can't go without it. Everything has gone up."
The wheat market has been pushed higher by a combination of agricultural, financial and energy issues.
Poor wheat harvests in Australia and parts of Europe and the U.S. have caused China and other Asian countries to buy up more American crops, which are especially attractive because of the weak U.S. dollar.
At the same time, the American crop is shrinking because of federal incentives to grow corn for ethanol. And skyrocketing gas prices make it costlier to get any wheat to market. Those same pressures have also made it more expensive to supply feed grains for livestock.
At Bob's Red Mill flour company, wheat flour has typically been subject to retail price adjustments every five years. Now those increases are happening almost monthly.
"You look at the price and you say, 'Oh, my gosh,'" said Dennis Gilliam, executive vice president of sales and marketing for the company in Milwaukie, Ore. "It keeps climbing every day."
Wheat historically trades at $3 to $7 a bushel.
But this week, futures of spring wheat — which produces the flour used in hearth breads, rolls, croissants, bagels and pizza crust — were close to $18 a bushel on the Minneapolis Grain Exchange. They climbed as high as $24 in late February.
Consumers pay an additional penny on wheat products for each dollar the price-per-bushel increases. "It's a huge impact," said Steve Mercer, spokesman for U.S. Wheat Associates, an industry group.
