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Wayne Gordon, UBS Global AG commodities strategist, on the lasting effects of the summer’s drought on consumers.
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-- in a year now.
Are crippling crops -- shipping channels and thinning livestock herds just part of this problem but.
What kind of impact could have all you'll grocery store bill probably not by good -- -- global agricultural.
Commodity strategist for UBS joins me now with the latest plane.
We talked a lot about the drought low earlier this year in the summer we know that what I believe it started in Oklahoma Texas spread to the midwest.
Is it still an issue.
-- look you know as as -- in two weeks yeah its real reason people -- to forget about to.
The overly effects of the -- that what -- figure to be filled to the supermarket.
He's actually for -- The -- about you know three or four months ago and and even -- -- to wheat -- in the United States today who in week it condition situation.
The -- three decades.
So -- a rule we into reading.
This week to period and in as we move into.
Into screen.
And we have fairly drug was to profile which is we need to -- for potential crop fields so we noted we have prices will likely go up while other impacts that we -- -- -- -- -- Supply.
Has been cops -- as a result those cost of -- feed through into.
-- produces chicken producers and -- produces.
A lot of those guys page out for any tough to seeks to nine months but I say those guys who hinged around Jean announced he would will be -- -- -- have probably board.
Corn -- let's -- six dollars a bushel -- -- corn spot to.
I don't as the bush who -- and now it's come back to around 750.
But as they have to now go back to the market has been readings in -- yet and repurchase grind to continue to produced chicken pool -- They'll have to -- -- -- the high priced so that prices -- going to start effective through into restaurant and and hundreds.
And food bills is there anything that can turn this around if we get.
A lot of moisture coming into -- -- in into the midwest will that help turn it around.
I I guess look at as as we into -- as -- into -- now we into the Dorman C period for I will be to wheat crop for example to what we really need to sees improving conditions becoming spree.
Next here so that's good brand fully notch.
-- April.
To get that -- off to a really could stop him particularly to you would scream corn crop soybean crop in the United States.
What -- -- prices over the next few months.
He's potential for very large crops from Latin America.
But they have their own way -- -- she's right -- as well Citi as a result we really need to use BC.
They're -- -- Latin America.
Particularly Brazil.
By -- and -- entering into any figures so tough when you relying on mother nature white gold but he so much they hit enunciated in his ruling -- watch out these high prices could be.
Hitting the grocery schools.
Certainly as we get into next year because the drought continues.
