It all started on Thursday August 5 2010, when Russia's Prime Minister, Vladimir Putin, announced that his country, the world's third largest producer, was interrupting all wheat exports after serious droughts and fire destroyed its wheat production by 20%. Some cereal markets immediately reacted with the price per ton of wheat increasing by 230 euros in Europe.

On a global scale the price hikes are not yet visible because the United States of America and Australia recorded high harvests during the last quarter, so experts predict it might take two to three months before global prices increase. They also fear similar cuts in production in two great production countries, the United Kingdom and Canada, where dry weather conditions and torrential rainfall have, respectively, affected production negatively. Speculation could be a determining factor in the days ahead as investors are preparing to buy huge quantities of wheat with hopes that the prices will rise further. The FAO has cut its 2010 wheat production forecasts by 4% to 651 metric tons against 676 metric tons announced in June.

It should be recalled that global price hikes in wheat resulted to increases in the prices of bread and pastries, causing instability in several poor countries. The government of Cameroon took measures to offer tax breaks to importers of wheat flour thereby reducing the prices that were unilaterally fixed by bakers. Today, traders in some of the markets and shops visited in Yaounde still seem to be unaware of the trends in the world market. Their prices stand at FCFA 350 per kilogram and FCFA 15,000 per bag. Wheat flour is mostly used in Cameroon for basic foods like bread and pastries. A price hike would definitely lead to an increase in the price of bread or a decrease in the quantity of wheat used in bread.

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