An IFPRI brief shows that we shouldn't panic yet, though:
- The losses are about 1.6% of world wheat supply. The US has more than that in storage right now. I would add that a number of other countries (China, India) have been building their supplies heavily in the last several years, further dampening the effect.
- Spot prices are up, but the volatility is still within what we've experienced since the food crisis and wheat futures are not showing the kind of response we saw last time.
- Australia, the US, and other regions are looking at higher crops than last year, offsetting some of the losses.