As global food prices get ever closer to record highs, wheat prices act as a mirror image as UK wheat prices creep towards the decade high set in 2012.
Global food prices are not the only issue pushing prices. Drought, frost and heavy rain in key exporting areas have also had a large impact on the recent rise in wheat prices. As stated last week European Wheat is now being used to fill the gap left by the shortages of global exporters.
Widespread rainfall across the US has slowed crop harvest last week, with soybean harvest falling behind the five year average pace according to the USDA crop progress report.
Brazil forecasts rain this week which is beneficial to soybean planting, however Argentina remains dry. Another La Nina warning remains a key watchpoint for supply , as news emerges that this weather front is now in force.
US Corn harvest was also slowed by wet weather conditions, yet stayed ahead of the average pace. As we move into November we should see maize prices ease after the delay of the French and Ukrainian harvest.
Ongoing energy issues in several countries combined with the ongoing logistical transport problems will continue to have an impact on all commodities and materials.
