From the San Francisco Chronicle:

Global wheat harvests may trail demand for a second year, spurring hoarding and further price gains, said the United Nations.

"Whenever you get the market as tight as we are now, hoarding becomes widespread," Abdolreza Abbassian, a senior economist at the UN Food and Agriculture Organization in Rome, said in an interview.

Wheat, corn and soybeans soared to the highest levels since 2008 yesterday as a U.S. government report showed smaller crops and rising demand are eroding global inventories. Governments from Beijing to Belgrade are raising imports, limiting exports or releasing supply from stockpiles to curb inflation. Wheat in Chicago, the global benchmark, soared 72 percent in the past year as drought and floods ruined crops. Dry weather threatens production in China, the top producer.

UN Sees Risk of 'Widespread' Hoarding, Wheat Gains