Global food price shock may gain more strength

Published 2021년 4월 26일

Tridge summary

The Bloomberg Agriculture Spot index has experienced its biggest increase in nearly nine years, with commodities such as corn, wheat, soybeans, and vegetable oils seeing a significant price hike. This surge, driven by commodity futures, comes at a time when global food prices are already at their highest since mid-2014. The rise in raw material prices has negative implications for families and businesses, threatening to limit monetary policy ease and exacerbating economic challenges post-pandemic. These increasing prices, which are part of the food inflation, are particularly challenging for emerging markets and can lead to global hunger if the trend continues. Adverse weather conditions in key agricultural areas like Brazil and the United States, coupled with continued demand from China, suggest that high commodity prices are here to stay, leading to increased costs in supermarkets and raising concerns for food and beverage companies.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Corn, wheat, soybeans, vegetable oils: the prices of a small group of commodities that make up the world diet are much higher, which sends alarm signals to budgets around the world. Last week, the Bloomberg Agriculture Spot index - which tracks the main agricultural products - showed the biggest increase in almost nine years, driven by the rally in commodity futures. With global food prices already at the highest levels since mid-2014, this latest leap is closely monitored because staple products are an ubiquitous influence on supermarket shelves. The increase in raw material prices has a wide impact on families and companies and threatens the world economy, which is trying to recover from the damage caused by the coronavirus pandemic. → With free subscriptions, investment series has Vitreo's CIO and shows team of professionals to leverage its capital These prices help to pull food inflation, making it more difficult for families that already face financial pressure due to the ...

Source: Moneytimes