Wheat prices leave industry with plenty to chew over

By: Dean Best - 3 August 2010 17:50

Wheat prices fell back a touch today (3 August) following the announcement from Russia, one of the world's major exporters of the commodity, that it would not restrict exports even amid one of its worst droughts in a century.

The price of wheat dipped today after climbing to a 22-year high yesterday, fuelling fears of rising costs for food manufacturers and higher shopping bills for consumers.

Despite the dip in price, the cost of wheat will be a hot topic as Premier Foods plc, the UK's largest food maker and owner of Hovis bread, reports its half-year results to the market tomorrow.

Shares in Premier fell today as the market prepares to hear the latest from a company that saw sales slide 5% in the first quarter of 2010. Some in the City believe Premier will not have much more good news to share.