The economic daily newspaper Les Échos regularly analyzes the challenges facing the food industry, so it also monitors the development of market prices. In the article published by Étienne Goetz on July 8, it is written that after the peak in March, food prices are still very high (higher than in 2021), despite this, they are constantly decreasing, which is the main reason for the relatively good global crop outlook.
This “pulls down” the stock market price of grain. While the price peak in 2011 was triggered by the "Arab Spring", the current one is clearly due to the Ukrainian crisis. Attention is primarily focused on rye grain, including wheat. The fall in prices is not only due to the good harvest prospects in the northern hemisphere (mainly in Canada and Russia), but also to the decline in demand. Sugar and vegetable oils have also seen a price drop. The Russian grain harvest promises to be so good that the country can export up to 40 million tons in 2022-2023. This is partially reflected in the prices of the Paris grain exchange, where after 420-440 euros/ton in March and May, the exchange rate "softened" between 340-360 euros/ton. The prices jumped mainly because of the grain stuck in Ukrainian ports on the Black Sea. After it became clear that Russian exports will continue and the trapped Ukrainian stocks are smaller than market participants expected, so although the traders have ...
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