Fears over a further rise in the cost of wheat have been played down by a leading investment group.
A severe drought has affected wheat growers in areas of northern, eastern and central China, which plants around 24 million hectares of wheat each year, with water supplies at critical levels.
Market analysts expressed concern earlier this week that a shortage of wheat could push prices in the UK extremely high.
However, brokerage Wanda Futures believes that things are not as bad has been feared, as the major wheat-producing area of China, Henan province, has not been affected by the lack of rain.
"The drought hasn't had significant impact on Henan's wheat crop overall," Wanda analyst Li Jingwei told Bloomberg.
He added that wheat in Henan is currently developing well, and the drought in China should not have an overly-adverse affect on the price of wheat paid by baking firms in the UK.
Typical Guttridge equipment used in the baking industry includes; feeders – metering screw feeders – weighing systems
