Surging grocery prices by mid-summer

Image via WikipediaSurging wheat and corn prices could hit the items in your grocery basket by mid-summer if planting conditions across the country don't improve.

It's a case of two extremes: dry weather conditions in parts of the southern United States and in Europe have sparked fears of a supply crunch of wheat, while supplies of corn are being threatened by flooding and heavy rain in the Midwest.

Wheat futures rose for a fourth consecutive session on Thursday, and prices are up more than 10% from a week ago. Corn futures were mixed Thursday after rising for five days, and are up nearly 12% over the past week.

While it typically takes time for increases in the futures markets to translate into price hikes at grocery stores, consumers could be in serious trouble if supplies continue to dwindle and prices keep going up. More...