The food market is also feeling the extreme weather

By: Trademagazin Date: 2024. 07. 22. 12:50

In Hungary, it is expected that the price of flour and, consequently, of bread will increase in the coming months. Zoltán Lakatos, the president of the grain processing department of the Grain Association, recently spoke to InfoRádio, where he detailed the expected development of the price of wheat and its reasons.

Weather shocks affecting the wheat crop

According to Zoltán Lakatos, three significant weather shocks affected the development of wheat this year: the heat wave in March, the frosts in April and the intense rains in May-June. These events did not favor the uniform development of wheat, resulting in small yield losses and quality problems. The president said that this situation is expected to result in a price increase for the milling industry, as the quality and quantity of wheat does not meet general expectations.

International and local differences in wheat prices

Interestingly, while on the international market, especially on the Paris Mercantile Exchange (MATIF), wheat prices are falling, the opposite is happening in Hungary. According to Lakatos, this opposite trend results in a higher price level, which particularly sensitively affects the Hungarian market.