A leading economist says that industry sources and analysts predicting the Russian wheat export ban will have little impact on EU food prices are “naïve”, and overlook the fact that major futures contracts for Russian wheat are now worthless.
Rabobank has predicted that wheat prices are likely to ease but warned that the bakery industry may struggle to pass on higher costs to consumers if prices remain high.
US Department of Agriculture (USDA) Secretary Tom Vilsack said on Tuesday that world wheat supplies are robust, despite fires that have devastated Russian wheat crops and flooding in Canada.
Co-ordinated EU-wide action is needed urgently to end food price volatility induced by market speculation, warns the European Flour Milling Association after wheat prices reached a 23-month high yesterday.
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.
The FAO is cautiously optimistic about the prospects of food commodities in the wake of economic upheaval in the past two years, but average prices for wheat and grains, vegetable oils and dairy are likely to be higher over the next decade.
Many American consumers would be receptive to foods containing genetically modified wheat if it is produced sustainably, suggests a new survey examining attitudes to food technologies from the International Food Information Council (IFIC).
Wheat production on a global scale for the 2010-11 global crop has been revised upwards by two million tonnes to 660 million tonnes, according to the May report from the International Grains Council (IGC), which was less upbeat abou the EU harvest.
Cocoa prices have proved resilient in the economic downturn, even as other commodity prices have slumped, and confectionery manufacturers are concerned that tight supply will keep prices high for some time yet.
Bakers will welcome fresh figures from Austrian sugar, starch and fruit preparation supplier Agrana that reports a lift in autumn harvest figures for commodity-derived ingredients, an encouraging sign that supplies for formulators may ease into 2009.
There are signs that rising commodity costs are pinching the length
of the food chain with US cereal product maker General Mills
warning that, despite strong fourth quarter figures, the soaring
costs will have an impact in the near...