World: Agricultural economic analyses

Published Oct 1, 2024

Tridge summary

Spring-sown field crop harvest has commenced in many European countries, though heat and drought in Central and Southeastern Europe have led to significant crop losses. The European Central Bank has cut interest rates due to favorable inflation prospects and deteriorating growth, and the euro remains strong against the dollar. Despite the economic data and global demand and supply trends, a significant price increase on international markets is not expected in the short term. Hungary's harvest is expected to be the third worst in the past 15 years due to extreme heat and lack of precipitation, and there are concerns about aflatoxin contamination. There have been no significant changes in the global supply and demand data series for wheat, and the expected excellent harvests in Canada and Australia.

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

Original content

Harvesting of spring-sown field crops has begun in many European countries. While global crop expectations continue to give cause for optimism, as a consequence of the heat and drought affecting Central and Southeastern Europe, we have to calculate a significant crop loss in the region. Both the global and European grain market participants looked forward to the macroeconomic data and current analyzes to be released in the second week of September. The European Central Bank (ECB) cut interest rates, the 25 basis point reduction was driven by favorable inflation prospects on the one hand, and deteriorating growth prospects on the other. The euro remains strong against the dollar, and crude oil prices have been trending lower since June. At the time of writing these lines, only the interest rate decision of the FED, which plays the role of the central bank of the United States, may still be in question, although the analyst consensus predicts a monetary relaxation of 25 basis ...

Source: Agraragazat