• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 2 days Even Shell Agrees with Climate Change!
  • 8 days America should go after China but it should be done in a wise way.
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Kazakhstan Targets Fintech to Boost Revenue and Curb Tax Evasion

Kazakhstan Targets Fintech to Boost Revenue and Curb Tax Evasion

Kazakhstan's government is targeting fintech,…

Is This the Death of the American Penny?

Is This the Death of the American Penny?

Inflation has devalued the US…

ZeroHedge

ZeroHedge

The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

Record Declines in Grain Prices May Ease Global Food Crisis

  • Corn futures fell 31%, and wheat contracts decreased 21%, the largest drop since 2013.
  • The decline in grain prices is attributed to bumper crops in Brazil, the U.S., and Russia, along with expectations of reduced costs for staple foods and animal feed.
  • Despite the decline in global food prices, there's still uncertainty about the pace of price reductions and its impact on preventing food riots in emerging markets.

Despite the El Nino-related weather disturbances affecting key agricultural areas globally and the disruptions in the Black Sea stemming from the war in Ukraine, there is encouraging data suggesting further easing in food inflation in the new year. This development comes amid the soaring risks of food riots in emerging markets, as the weakening of EM currencies against the dollar has made staple foods increasingly more expensive for poorer populations worldwide. 

Bloomberg data shows corn and wheat prices have recorded their largest annual declines in a decade. This is primarily because of bumper crops in key ag regions and might lead to further easing of food inflation into the first half of 2024. 

Corn futures on the Chicago Board of Trade plunged 31% this year, and wheat contracts fell 21% - the largest annual declines since 2013. Soybeans were down 15%. This led the Bloomberg Grains Spot Subindex to slide 22.8%. This is good news for the United Nations Food and Agriculture Organization World Food Price Index, which has already come off record highs. 

"The rout was driven by bumper crops in key crop suppliers Brazil, US and Russia following years of disruptions caused by extreme weather, the Covid-19 pandemic and Russia's war in Ukraine that pushed prices to record highs in 2022," Bloomberg wrote in a note, adding, "Lower prices for staple grains could bring down the cost of bread and make it less expensive to feed livestock, dairy herds and even biofuels. Analysts are anticipating even lower prices for corn and soybeans in 2024, while wheat is expected to rebound amid tighter supplies." 

However, there is still uncertainty about whether global food prices will decrease swiftly enough to prevent food riots in EM countries. The current food price levels are comparable to those that sparked the Arab Spring riots in the Middle East in 2010.

Sara Menker, founder and CEO of Gro Intelligence, warned last month in an interview with Bloomberg TV on the sidelines of Bloomberg's New Economy Forum in Singapore that the current food crisis surpassed the one in 2007-08. She explained this is mostly because of elevated crop prices and steep declines in local currencies against the dollar. 

By Zerohedge.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News