The baking industry needs to brace itself for further volatility in the bread wheat market, an expert has suggested.
Home Grown Cereals Authority senior analyst Jack Watts recently told the Milling Wheat Conference that Russian harvests and the influence of currency markets will continue to create unpredictability in the price of wheat.
Mr Watts went on to explain to British Baker Magazine after the event that feed grain acts as a "price floor" for the rest of the market.
"Stock levels on the global maize market are very tight, which increases demand for wheat as a feed grain. This means wheat prices can only go so low before they meet the feed grain barrier," he told the publication.
Mr Watts is therefore advising firms in the baking industry to take a diverse approach when it comes to securing wheat supplies, to allow buyers to benefit from price fluctuations.
Gleadell Agriculture recently called on UK wheat growers to ensure diversification and avoid committing all their crops to ethanol production. This would help to ensure that supply to the baking and animal feed industries remains healthy.
Typical Guttridge equipment used in the baking industry includes:
