The price of wheat has risen above US$10 a bushel in the US amid concerns that the continuing rise in commodity costs will put further pressure on food prices.
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Reports in the US said a bushel of wheat moved above $10 to $10.095 on the Chicago Board of Trade early yesterday.
Wheat prices have doubled since the start of 2007, according to the Associated Press.
A combination of a drought in Australia, growing demand in Asia and increased production of biofuels has pushed up wheat prices, leading to rising food prices on supermarket shelves.
A number of the major food companies in the US, including dairy giant Dean Foods, have seen rising commodity costs weigh on their business this year.
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By GlobalDataOne analyst told AP that the emerging economies of China and India are now more able to afford wheat despite the rising price of the commodity.
“Globally, other economies are much stronger. China is up significantly, India is up significantly, and Russia’s economy is much stronger,” Mark Schultz, chief analyst with Northstar Commodity, told AP.
“When we used to run wheat prices up high, years ago, they didn’t have the money and they didn’t buy much of the product. Now prices run up and they’re still buying.”
