Australians are set to pay more for common groceries items like chicken, beef and bread despite some of the heaviest rainfall in more than 100 years, a market expert says.
This is because global wheat futures prices are at the highest level since November 2012 and grain is needed to feed livestock or make flour.
So while heavy rainfall in Australia pushes up crop yields, many other parts of the world are now in drought.
Russia, the world's biggest wheat exporter, is considering raising grain export taxes as Canadian farmers battle a big dry that has caused their annual wheat output to plunge by 38 per cent.
A global shortage of wheat leads to increased prices, which means Australian farmers want to sell more of their produce overseas to boost their earnings and make up for the lean times of Australia's long drought that ended in 2020.
Markets like Saudi Arabia are particularly keen to pay top dollar for much-needed wheat.
Jessica Amir, an Australian market strategist with Saxo Capital Markets, said more expensive wheat prices would make chicken, in particular, dearer.
Australians are set to pay more for common groceries items like chicken, beef and bread despite some of the heaviest rainfall in more than 100 years, a market expert says
Jessica Amir, an Australian market strategist with Saxo Capital Markets, said more expensive wheat prices would make chicken dearer. So while heavy rainfall in Australia pushes up crop yields, many other parts of the world are now in drought - with wheat futures at a nine-year high
'The most expensive part of raising a chicken is the wheat price, so it makes up about 80 per cent of the price of a bird,' she told Daily Mail Australia.
'You're going to see upward pressure on the price of poultry
