The bakery industry is not expected to be severely affected by the large rise in wheat prices, it has been claimed.
The price for spot CBOT wheat has risen 59 per cent since the beginning of July following the poor crop yields in Russia and Ukraine.
Financial services firm Rabobank has expressed its belief that it expects wheat prices to drop shortly, reports bakeryandsnacks.com.
Furthermore, it stated that current wheat supplies will be able to make up for the lack of exports in the short-term.
Therefore, despite the spike in prices, food processing and bakery firms will be able to absorb the costs as wheat prices are likely to quickly return to their previous rates.
Sapna Naik of Rabobank said: "Rabobank's view is that there are enough wheat stocks to make up for the shortage and as such, this price hike is expected to be temporary.
"Bakery players' margins are not expected to be impacted strongly."
Typical Guttridge equipment used in the bakery industry includes: hoppers – mobile loading hoppers – flexible bulk containers
