Wheat prices are at their highest in almost two years as suppliers in Russia were hit by widespread fires resulting from a drought in the country.
Fires in Russia, the world’s third-largest wheat producer, come after the lack of rainfall had already wiped out an estimated 20% of the nation’s crop.
The Russian Grain Union cut its production forecast for the year from 85 million tonnes to between 72 million and 78 million tonnes, with exports likely to range from 11 million tonnes to 19 million.
The price of wheat subsequently soared to a 22-month high.
The news comes after economists last week warned that the rising cost of animal feed could push up food prices by at least 10% next year. Some indicated that a double-dip recession could take place as a result.
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