Price of cereal-based products could soar
A “perfect storm” of record summer temperatures, low global grain stocks and the expected growth in biofuels has seen wheat prices rise to 10-year highs and may lead to big increases in the cost of bread and pasta.
Corn and barley prices are also likely to rise, which may in turn push up the cost of beer and breakfast cereals.
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The US has had the warmest year on record and Europe has experienced a heatwave that has damaged grain crops at a time when worldwide grain inventories are at relatively low levels.
In the UK, which this week experienced its hottest July day, crops have matured now, forcing some wheat farmers to start harvesting in mid-July, a month earlier than normal
