Floods will send wheat prices soaring
It will be some weeks before the full impact of the flooding on Britain's wheat crop is known. But with fellow European producers also suffering from extreme weather, it's a sure bet that the cost of a loaf will rise.
As the floods recede, we will have to wait several more weeks to see "if Britain still has any wheat or barley worth harvesting", says Colin Tudge in The Guardian. But it's a sure bet that the cost of a loaf of bread is set to rise; a similar deluge in France, Europe's largest wheat producer, last week sent milling wheat to a record e213 a tonne on the Euronext Liffe platform.
Drought in eastern Europe has reduced crops by up to 40% and the European Union expects the total cereal crop for 2007 to be 1.6% below the last five years' average. Global inventories are already at a 25-year low.
Across the Atlantic, US farmers exported a weekly total of 2.08 tonnes late last month, a figure last exceeded in June 1996, and US wheat prices in the Chicago Board of Trade hit $6.64 a bushel their highest in 11 years. You can spreadbet on the price of wheat, or buy an exchange-traded fund that tracks the wheat price see www.etfsecurities.com.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

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
For more on what the recent flooding means for investors, read: Can you profit from the floods?
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Review: Eden Roc Cap Cana – fun, sun and golf in the Caribbean
Travel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yet
The chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry