Global: Cereals prices will not rise in the medium term

Published 2023년 12월 27일

Tridge summary

Global cereals prices have decreased recently due to a large supply of grain, but the decline will be slowed by poorer wheat and corn harvests in Canada, Australia, and Brazil. The National Bank of Ukraine’s financial stability report for December 2023 predicts that while food prices will not rise in the medium term due to faster supply growth than demand, lower global commodity prices will negatively impact Ukrainian exports, particularly agricultural products. Ukrainian exporters are facing logistical constraints, including air strikes on infrastructure and protests blocking truck traffic from Ukraine in neighboring countries, and may need to seek resolution through the World Trade Organization.

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

Original content

Global cereals prices declined due to a large supply of grain. Further price declines will be slowed by poorer wheat harvests in Canada and Australia, as well as corn in Brazil next year. This is stated in the National Bank of Ukraine’s financial stability report for December 2023. However, food prices will not rise in the medium term due to faster supply growth than demand. In general, lower global commodity prices have a negative impact on Ukrainian exports, primarily agricultural products. At the same time, logistical constraints remain the main problem for Ukrainian exporters. After Russia suspended the grain corridor, Ukraine and its partners were able to organize a transportation route through the Black Sea. However, Ukrainian infrastructure on the sea and the Danube is under constant air strikes. Restrictions on the export of certain ...

Source: UkrAgroConsult