Photo: jayneandd on Flickr
Wheat prices and futures have surged around the world today after Russia announced that its wheat production fell 30.6% in 2012.European wheat prices have spiked, reaching a four year high of 279.25 euros/tonne. Wheat futures at the Chicago Board of Trade for December are up 6’0 on the day thus far and have cracked the 900’0 barrier.
A recent report from the UN’s Food and Agriculture Organisation indicates that global wheat production declined by 5.5% this year.
This report comes just one day before the World Agricultural Supply and Demand Estimates are released.
In the future, the higher price of wheat may be passed on to consumers via cereals, beers, and other products that use wheat as an input.
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