Fluctuating wheat prices

7 June 2011 – This year, wheat prices have continually fluctuated, Francisco Redruello, senior packaged food analyst at Euromonitor International explains further, “Dry weather conditions in China and Western Europe put upward pressure on prices in the beginning of April, but then prices declined at the end of April due to an implication in the slowdown of growth in major markets.”

Now, it looks like the global price of wheat is going to increase again for the following months as France experiences its warmest and driest Spring in 50 years. Wheat harvests have undoubtedly been affected.

French agriculture minister Bruno Le Maire believes that it is not possible to know the loss of yield at this stage, but “we already know there will be a loss.”

Russia’s announcement that it will end its wheat export ban on July 1 could help to ease the supply situation.

France is Western Europe’s largest producer of soft wheat, which is used in pastries and snack foods. A lack of supply and increasing prices is bad news for confectioners and bakers, who always seem to be negatively affected by fluctuating ingredient costs. It has only been a number of weeks since the cocoa crisis was resolved and everyone breathed a sigh of relief, but now we have this to contend with!