How commodity prices are driving the cost of UK food

Wheat hit a record in the UK over 200 pounds per ton, leve 90pc in last year. There are droughts in Russia and Ukraine. In addition, wheat used biofuel demand resulted in higher prices. Meanwhile, corn is the agricultural product is expected to grow most this year and is already over $ 6 per bushel - the highest level since the financial crisis. Already increased the price of 67pc, as China began importing grain for the first time in years and crops failed in bad weather. This is bad news for breakfast cereals.

When grain prices began to rise, the cost of the feed thereby. Prices for cattle, pork bellies and lean hog futures are rising between 19pc and 26pc with farmers, a peak year 20 of the Declaration. The squeeze is likely to continue with the increasing demand for better lifestyles, including diets more expanded, Asia and other developing regions.

Café

Among dozens of products reaching record heights, Arabica coffee reached a record of 13-year Wednesday. Supplies were affected by the disease in Colombia. Meanwhile, Robusta, used for instant coffee, has been climbing because of heavy rans Indonesia and the Viet Nam.

Sugar

Prospects for sugar are less certain, because it has already been negotiated to a maximum of 30 years for some time and some analysts believe the goods is due for a correction. Increase the obligations on suppliers of gasoline to mix their fuel ethanol has driven prices. Tight Indian supply has also been held more than $780 per tonne sugar.

Cocoa

Chocolate ingredient is a less efficient agricultural products last year. It is likely to be well provided next year, so no big shocks are expected - unless the political unrest continues in Côte d'Ivoire, the world's leading producer of cocoa. He is currently trade around $2950 per tonne.

And it is all driven by…...

There are a number of factors behind price shock food potentials under United Nations this month. More extreme weather events and the growing demand for the growth of the world's population are two factors underlying big. But it is also linked to the price high oil, used for the transportation of almost all products worldwide and fertilizer manufacture needed to grow crops. A weak dollar, bouncing equities, speculation and a global monetary easing are some of the reasons as strong markets across the Board. Oil is particularly sensitive to macroeconomic movements, as the one assets of alternative products with gold that is favored by investors.

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