Global food prices continue to rise, approaching a 10-year high
June 12, 2024, 9:21 AM
Urea Network
2734
Guide
Highlights at a glance
Global food prices have surged to their highest levels in a decade, driven by supply constraints and rising demand. The FAO Grain Price Index reached 133.1, up 7.5 points, with corn, soybeans, and wheat prices climbing due to adverse weather in key producing regions like the U.S. and South America. Labor shortages from pandemic-related travel restrictions have disrupted agricultural production, while faster-than-expected demand recovery fueled by vaccine rollouts has widened the supply-demand gap. Additionally, global monetary easing has directed investment flows into food commodities, further inflating prices. Major food companies including General Mills, Nestlé, and Japan’s Nisshin Oillio Group are raising product prices amid cost pressures. Russia is also considering export restrictions on staple foods, having previously imposed domestic price controls on items like sugar and flour to curb inflation. The combination of climatic, economic, and policy factors points to continued volat
According to the Food and Agriculture Organization of the United Nations (FAO), food prices continue to rise to their highest levels in the past decade.
Specifically, the grain index rose to 133.1, an increase of 7.5 percentage points. The prices of corn, soybeans and wheat have risen in tandem. There is a growing view that in the United States and South America, the main grain producing areas, the harvest will be further reduced due to unstable weather such as dryness and rainfall.
In addition, there are other reasons for rising food prices.
Due to travel restrictions caused by the new crown epidemic, there is a shortage of foreign workers engaged in field work in many countries. At present, with the popularization of vaccines, the demand for food is recovering faster than expected, production cannot keep up with demand, and prices are likely to rise.
In addition, there is also a side where global monetary easing has led to investment funds flowing into food.
As the grain market rises, General Mills, a US food company, will start raising prices for grains, etc. Nestlé President Schneider said, "Today's environment is very unstable and action will be taken on price setting." Japan's Nisshin Oliyou Group and others also proposed price increases. Russian Foreign Minister Lavrov stated that Russia is prepared to continue to impose restrictions on the export of key foods. Prior to this, the Kremlin has suppressed the prices of major grains such as sugar and flour due to price increases.
Specifically, the grain index rose to 133.1, an increase of 7.5 percentage points. The prices of corn, soybeans and wheat have risen in tandem. There is a growing view that in the United States and South America, the main grain producing areas, the harvest will be further reduced due to unstable weather such as dryness and rainfall.
In addition, there are other reasons for rising food prices.
Due to travel restrictions caused by the new crown epidemic, there is a shortage of foreign workers engaged in field work in many countries. At present, with the popularization of vaccines, the demand for food is recovering faster than expected, production cannot keep up with demand, and prices are likely to rise.
In addition, there is also a side where global monetary easing has led to investment funds flowing into food.
As the grain market rises, General Mills, a US food company, will start raising prices for grains, etc. Nestlé President Schneider said, "Today's environment is very unstable and action will be taken on price setting." Japan's Nisshin Oliyou Group and others also proposed price increases. Russian Foreign Minister Lavrov stated that Russia is prepared to continue to impose restrictions on the export of key foods. Prior to this, the Kremlin has suppressed the prices of major grains such as sugar and flour due to price increases.
Recommended for you
-
International Fertilizer Market - Potash Giants Report First Quarter: Signs of Recovery in Potash Demand! Meanwhile, Russian Fertilizer Exports to the US Reach Annual High4647
-
Phosphate Fertilizer Weekly Report: Supported by Pending Orders and Costs, Firm Prices4286
-
Urea Weekly Review: Cautious Buying and Slow Follow-Up, Prices Hold Steady4382
-
Urea Daily Review: Weakened Supply-Demand Support, Enterprises Lower Prices to Attract Orders4342
-
Phosphate Fertilizer Daily Review: Pending Orders Support Prices, Stability in the Short Term4366
June 12, 2024, 9:21 AM
June 12, 2024, 9:21 AM