Thursday, 5 August 2010

A rally or a realignement?

The current London feed wheat price is £150 per MT. Too much say traders; not enough say I.

If you look at the last twelve months the price does indeed look like a spike.

However if you take it in context with the last twenty years of prices which have shown a downward trend you could argue that this is a realignment rather than a spike.

If you take 1990 as a base price of £106 and add say 2% for inflation every year then by 2010 wheat would be £158.

Should we be paying more for our food?