Wheat levels for 2007-2008 may drop to their lowest point in 59 years, the U.S. Department of Agriculture (usda) has reported. The department expects the national supply to be 307 million bushels, down from its September estimate of 362 million bushels.

If the usda estimate proves correct, by the end of this year the nation will have its smallest wheat stockpile since 1949.

There were 149 million Americans in 1949. Now there are more than 300 million.

The shrinking wheat supply is attributed to high international demand for U.S. grain. Adverse weather conditions have claimed acres of crops worldwide, driving wheat prices to record highs. On Thursday, they jumped 30 cents to $8.83 a bushel.

According to moneyandmarkets.com, the news is an “agricultural bombshell.” Analyst Sean Brodrick writes that global stockpiles are already at 26-year lows, sufficient for less than two months, and that rising prices for groceries are only beginning. The greatest cause for concern, Brodrick says, is that wheat stockpiles are shrinking even though U.S. yields are soaring.

As wheat harvests in Australia, Russia, the Ukraine, Egypt and China have taken hits, demand continues to climb. The same is true with corn and other grains. China, a former corn exporter, is beginning to import the grain, and India and other emerging markets are demanding more and more wheat, corn and other grain for direct consumption and other uses, including biofuel.

As national and world populations continue to boom, and weather and other disasters continue to damage production, expect these rumblings to lead to an explosion in demand and prices for agricultural commodities. In view of mounting economic instability, Herbert W. Armstrong stated for years, “I warn you, prepare greatly to reduce your standard of living!” (Plain Truth, January 1980). The conditions he forecasted now surround the American household. That solid advice is more applicable now than ever.