Vecht, who manages the BlackRock Eastern European Trust and co-manages the BlackRock Emerging Markets fund, said the prices of wheat were up 20 per cent in the last month, whilst the price of corn has hit a six month high.
"Whilst this is a short-term move, it could be a developing story. These are the sharpest moves we have seen for a long time. Russia has had one of its hottest summers for over 40 years and drought has become an issue. The impact of this is that wheat prices are going up," he said.
Vecht said it was definitely an area he would be looking at for his portfolio.
"This is an ongoing situation but it is definitely something we are looking into in the short term," he confirmed.
Vecht also said weather conditions were something the fund paid particular attention to.
"We always look at the weather, it is a surprisingly important feature and has an ongoing theme so we always look at this."
There are few funds currently invested in wheat, according to Financial Express data. Most retail investors would gain exposure through exchange traded products rather than unit trusts or OEICs. The recent short term price changes referred to by Vecht are clear in the chart below, where leveraged wheat products have risen sharply, and short products conversely have fallen.
Performance of wheat over 3-mths
Source: Financial Express Analytics
Over the past six month and one year periods, the story is slightly different, as the following charts indicate. Data suggests that there is only one fund, the offshore Odey Oei Mac, which has any serious exposure to the commodity. The hedge fund's two per cent weighting represents one of its biggest long exposures.
Performance of wheat over 6-mths
Source: Financial Express Analytics
Performance of wheat over 1-yr
Source: Financial Express Analytics