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Wheat prices reach 22-month high

3 August 2010 Last updated at 19:50 BST

Wheat prices have hit a 22-month high after a severe drought and ensuing wildfires in Russia devastated crops.

Chicago Board of Trade wheat for delivery in September broke through the $7-a-bushel level in US trade for the first time since September 2008, before falling back to $6.93.

Prices have risen 50% since late June, and concerns are growing that the rise will lead to an increase in prices of flour-related products such as bread and biscuits.

Ben Shore reports.