How to spread bet the wheat spike

Wheat prices are on a roll. Demand is being stoked by ever more wealthy emerging markets such as China. And of course, speculators are sensing an easy win. So how to play wheat? One way is via spread betting.

Wheat prices are on a roll. Just this morning they hit a two-year high as traders panicked about the state of the drought-stricken Black Sea crop. Prices have ticked up on both sides of the Atlantic with contracts for December delivery up 3% in Chicago in just a few hours and up 5% in Paris. Overall, as the FT notes, wheat prices in the US are up 70% in little over a month.

You can tell things are pretty bad when the UN feels compelled to stave off a general panic wheat is after all a staple crop by saying that the risk of a repetition of the 2007-8 food crisis is small.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.