Major bakeries in Israel announced Monday that another increase in bread prices may be inevitable, Yedioth Ahronoth revealed Monday.
According to the report, rising wheat prices have set a new record over the weekend. Heavy rain in the US' Midwest and unfavorable weather in Canada and Europe has severely damaged the crops, creating a demand the current supply might not be able to meet.
Australia's wheat crops have suffered as well: the world's third largest grain supplier said the crops were damaged. China's crops are not better off, as floods and drought cut the nation's crops by 10%.
Market analysts warn that given this year's crop losses the global wheat reserve may reach a low point not seen in 26 years.
Faced with these supply difficulties, wheat prices in the Chicago Mercantile Exchange spiked to $7.44 a bushel (about 8 gallons), reaching their highest point in 10 years.
According to the controlled prices regulation customary in Israel, bread prices must be updated whenever a 3% increase in world wheat prices is evident.