Wheat breaks through $10 a bushel

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.