UK wheat prices hit an all-time high, meaning the cost of the UK loaf it set to rocket.
Industry executives and traders have told wholesale consumers to expect wheat price increases over the next two to three weeks, following a round of hikes in October and November.
UK wheat prices hit a nominal record high in the London market on Tuesday at £203.30 per tonne, up 90%t over the past year and above the previous peak of £197.50 a tonne set in September 2007.
The Wheat rises have been caused by a drought triggered that triggered crop failure in the Black Sea region of Russia and Ukraine. Production of wheat across the world has also been lower than expected elsewhere.
The UK exports most of its surplus to Belgium, Spain, North Africa and the Netherland. They have also sold wheat as far away as Thailand and Vietnam this season.
UK Domestic demand is also higher because of increased biofuel production, according to traders.
Traders said the UK had already sold 1.2m-1.3m tonnes of wheat overseas, its entire surplus. They also express concern over a “Global Shortfall” of high quality wheat.