Russia’s invasion of Ukraine has sent shockwaves rippling through the food supply chain, but thanks to a confluence of factors, the wheat market – in particular – is “on fire,” say analysts at Rabobank.
The FAO has revised downward its forecast for 2010 world wheat production levels and reports that wheat market dynamics drove international food prices up in August by 5 per cent - the biggest month-on-month increase since November 2009.
It’s too early to predict the impact of huge rises in wheat prices on European flour products such as bread and biscuits, according to the National Association of British & Irish Millers.
Food makers still vulnerable to rising ingredients prices as
soybean, wheat and corn prices rise 20 per cent, 16 per cent and 9
per cent respectively last month, reports Lindsey Partos.
