Concerns about the burden on brewers grain in stock
The titles of the biggest names European food and beer fall sharply down due to soaring grain prices caused by the decision of Russia to stop its exports.
The European index combining the values of agribusiness is one of the few to be down, falling 1.64% to 10:20 GMT, the pan-European index Stoxx Europe 600 0.29% gain.
"The industry is declining due to wheat prices, which will weigh on corporate profits," said a broker.
The Brewers are most affected by the surge in: Danish Carlsberg fell 4.7%, Dutch Heineken 3.4%, Belgium's InBev AB of 3.2% and Britain's SABMiller lost 1.81%.
The big names in the food are much better off: 1.27% yield Nestle, Danone and Unilever 1.27% 1.79%.
The current drought in Russia, one of the worst in the history of the country, devastated crops in many regions, causing a surge in wheat prices on international markets.Thursday, Moscow had announced a temporary suspension from the August 15 grain exports and agricultural by-products due to poor harvests.
Investors fear of severe stress on the grain markets over the coming months in the absence of a major world exporters.
In one week, the price of wheat in Chicago recorded a jump of 25%.
On the occasion of the publication of its quarterly results Thursday, Unilever has rightly said that the second half would be more difficult because of the cost of raw materials.