Wheat price hike hits shoots

Wheat prices have gone through further turbulence after Russia withdrew from and then rejoined a vital food supply plan. Prices initially rose steeply after Russia withdrew its support for the Black Sea Grain Initiative. The internationally brokered deal had allowed ships carrying wheat to leave three key Ukranian ports without risk of Russian attack.

Ukraine is a vital source of wheat, particularly for the Middle East and North Africa, and the introduction of the scheme earlier this year led to a significant reduction in global wheat prices. However, a Ukrainian attack on Russian warships in Sevastopol led to Russia withdrawing from the scheme, and global prices surged in response. UK wheat prices track global prices, and feed wheat rose almost immediately. However, shortly before going to press, Russia announced that it intended to rejoin the scheme in a move is likely to push prices back down again.

Other costs for shoots remain high, with red diesel at £1.07 per litre, up from just under 74p per litre a year ago, and heating oil at just under £1 a litre.

Shoots are suffering further cost uncertainties as the price of wheat fluctuates