Wheat prices at 10-year high, with corn and barley expected to rise

RECORD summer temperatures in the US and EU, low global grain stocks, and expected growth in biofuels have pushed wheat prices to 10 year highs. Corn and barley prices are also likely to rise.

Strategie Grains had predicted EU production to increase 8m tonnes this year, despite the Single Farm Payment which growers collect whether they produce a crop or not.

But the market research group has now lowered its EU grain production estimate by 2.3m tonnes, due to heatwave damage.