News

Good news: Global food prices will drop drastically

Russia
Ukraine
India
Market & Price Trends
Published Apr 24, 2024

Tridge summary

Oxford Economics predicts a decrease in global food prices in 2024, largely due to ample supplies of wheat and corn. This is attributed to increased production by farmers in response to price hikes following Russia's invasion of Ukraine in 2022, leading to a record global corn harvest. However, rice prices are experiencing an increase due to export restrictions by India and poor harvest conditions. While dairy, meat, and vegetable oil prices are expected to see a slight increase, there is risk they could rise more sharply due to uncertainties such as adverse weather conditions and buyer behavior in Africa and Asia.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Jakarta, CNBC Indonesia - Global food prices are expected to fall in 2024. This was conveyed by Oxford Economics in a report quoted on Tuesday (23/4/2024). Oxford Economics said that the main driving factor behind the decline in food commodity prices was "abundant supplies" of various important crops. This is especially true for wheat and corn. "Our basic estimate is that world food commodity prices will record an annual decline this year, thereby reducing pressure on retail food prices in the downstream sector," the economic advisory firm wrote in a recent note seen by CNBC International. Massive harvests in recent months for these two staple foods have caused prices to drop. According to FactSet data, wheat futures have plunged nearly 10% so far this year while corn futures are down about 6% over the same period. Farmers are increasing production of wheat and corn grains following price increases after Russia initiated an attack on Ukraine in 2022. As a result, the global corn ...
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