Summer rains hampering the tail-end of Europe's wheat harvest have dented output and raised doubts over quality.
The wheat harvest for most Western members of the EU bloc is virtually over, but more rain is preventing German and British farmers from gathering the last of their crops.
Fintan Conway, executive secretary of the Irish Farmer's Association National Grain committee said it was very rare for poor weather to be affecting crops in the northern and southern hemispheres.
As a result, grain prices are almost €100 a tonne higher at around €240. He said every €25 per tonne rise in wheat prices translated into a two cent rise in the cost of a loaf of bread.
"Now some of the increase has already been added on, it went on about four months ago but at current levels I think we can expect small rises in bread prices."
Freak summer weather, which has included dramatic swings from hot to cold in countries like Italy, coupled with sharp downward revisions in particular for Eastern Europe's likely wheat production will be supportive for wheat prices which have rallied over 80 per cent since early April in Paris.
Everyone from food manufacturers to livestock firms and consumers are feeling the pinch as prices soar, raising concerns that this will feed through into higher inflation in Europe.
Yesterday, Paris-traded new crop futures hit a new record at €241.50 a tonne.
The difficult weather has led to estimates for France's wheat output being cut to 32.5 million tonnes, according to domestic grains agency ONIGC, but some players expect the number to dip below 32 million tonnes.
Last year, France produced 33.3 million tonnes of wheat.