US wheat futures experienced volatility this week with traders concerned that floods in Australia would hamper transportation of wheat and export commitments would not be met.
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.
Bakers may expect to pay out more for flour on the back of the rally in global wheat prices this month, following production setbacks in the EU, Russia and Kazakhstan, claim industry commentators.
There was a time when a widespread wheat shortage spelt inflation,
and a global shortage meant global inflation. This year, with
stocks at a 30-year low and wheat prices soaring, it is possible
consumers may never even notice. All...