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Last Updated: Monday, 17 December 2007, 15:34 GMT
Wheat breaks through $10 a bushel
Wheat
Wheat prices have doubled since the start of 2007
US wheat futures have risen more than 3%, passing the $10-a-bushel mark for the first time.

The current benchmark Chicago Board of Trade WH8 contract for delivery in March hit a record high at $10.09.

World wheat stocks are expected to fall to a 30-year low next year, partly hit by droughts in Australia.

Wheat prices have nearly doubled since the start of the year, fanning fears about food price inflation at a time when the global economy may be slowing.

Rising wheat prices have been passed on to consumers worldwide and sparked protests in Asia.

We think agricultural commodity prices are going to continue rising
Moncef Kaabi, Natixis

Protesters in Pakistan have blamed President Pervez Musharraf for failing to control prices.

They also blame smugglers and hoarders for depleting what they say was a bumper harvest.

Elsewhere, Australian exports are expected to halve, while Argentina temporarily halted wheat exports this month to assess damage caused by cold weather.

Russia is expected to ban wheat exports next month.

"We think agricultural commodity prices are going to continue rising, (with the scale) depending on the climate and the state of the harvests," said Moncef Kaabi, head of commodities research at French investment bank Natixis.

SEE ALSO
Sowing the seeds of farming's future
13 Nov 07 |  Science/Nature
A field of dreams?
12 Oct 07 |  Magazine
Counting the cost of wheat price hike
21 Sep 07 |  Special Reports
Australia slashes wheat forecast
18 Sep 07 |  Asia-Pacific
Wheat tops $9 mark for first time
12 Sep 07 |  Business
In-store bread vs in-bag bread
16 Mar 07 |  Business



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