Renewed flooding in midwest will drive up prices

| 22 June 2008 07:04


Last Monday, I warned of the ill effects that flooding would have on our pocketbooks in the post Floods increase the chances of inflation. Unfortunately, we have seen renewed flooding in the Midwest this week as well. The total impact will not be clear until harvest.

Yesterday, Bloomberg News reported:

The Mississippi River crested at St. Louis yesterday at 37.3 feet (11 meters), below the record 49.58 feet 15 years ago, Accuweather.com reported. The flooding won’t dissipate quickly, Dooley said.

Tens of thousands of acres of farmland submerged in Iowa will swell the tributaries feeding the Mississippi, Dooley said. The river will fall at barely one-tenth of a foot per day. Even after the fields are no longer covered, the water beneath the surface has to find its way into waterways.

-Bloomberg News, 21 Jun 2008

Related articles
Perfect storm in grains market, The Age, 23 Jun 2008

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

Related Posts
More About: , , , , ,