Have a barbecue this week or take your family out for a picnic? You may want to stock some bread while the price is still cheap.
According to market conditions, the price of normally unattractive bread is likely to soar soon, as wheat prices in Australia rise rapidly.
Whether you like white bread, cereal bread or yeast bread, prices will go up widely.
The reason: East Coast wheat futures contract prices have soared 24% in the past six months.
What is a futures contract?
A futures contract essentially refers to buying (or selling) something at an agreed price.
As we all know, "futures" can be used as a barometer of price trends. When futures prices rise, it means the market expects prices to soar.
The product of this price increase is wheat. Bread prices change with the trend of wheat prices.
So why did wheat futures rise?
Farmers are pointing to dry weather, which has battered most of Australia's major wheat fields.
Severe drought may put pressure on wheat production.
Australia's winter planting season has not started well, and the long-term outlook has not been much better.
The bureau estimates that the El Ni ñ o climate model is 50% more likely to put more pressure on Australian farmers.
How much wheat did the farmers plant?
Analysts at National Bank (NAB) this week downgraded Australia's winter wheat production forecast to "just below" 20 million tonnes.
Just a month ago, the bank forecast output of 21.3 million tonnes. The federal government forecast last month that Australian farmers would harvest 21.9 million tons of wheat.
NAB said the downgrade was due to "very serious" conditions in many parts of Australia.
The difference between the National Bank's 20 million-tonne forecast and Australia's government's 21.9 million-tonne forecast may sound trivial.
But in a country that likes bread and exports a lot of wheat, a slight drop in production can have a significant impact on prices.
A shortage of livestock feed in Australia could also keep prices up, at least compared with other national benchmarks, Bloomberg reported.
Do Australians really eat that much bread? That's for sure。
If you had the craft of making delicious bread for Australians, you would have made a lot of money.
According to Roy Morgan (Roy Morgan), 11 million Australians buy bread every week.
Over the years, supermarkets Coles,Woolworths and Aldi have been expanding the range and visibility of their own branded bread, trying to gain market share from brands such as Tip Top and Helgas.
Meanwhile, Australians spend more than 2 billion yuan a year in chains such as Brumby's and Bakers Delight and independent bakeries.
Of course, businesses may try to digest the impact of rising wheat prices and save us from pain, but don't take it lightly.
So, if you like bread, stock up a little now.