Wheat prices show no sign of easing, with the wheat futures market hitting its highest level since April 2008, due to weather concerns in key growing countries and strong demand for UK wheat.
Contracts on the LIFFE wheat futures market closed at £170.75/tonne on 28 October, while the delivered price of a tonne of bread wheat to London in November stood at £192.50.
Prices remain high due to a lower-than-expected US maize harvest, plus dry weather affecting plantings. There are also concerns over dry weather in western Australia and too much rain in eastern Australia, as well as lower-than-expected levels of planting in Russia.
Gary Sharkey, head of wheat procurement for Rank Hovis, said that increased demand for UK wheat imports from North African and Mediterranean markets was also a factor in propping up prices.