In the new crown pneumonia (CCP) Epidemic, commodity importers have snapped up cereals, oilseeds, soybeans and sugar to boost Food stocks, driving up cereal prices, and some poor countries may face food shortages.
According to the United Nations Food and Agriculture Organization (FAO) data, tracking a basket of grains, oilseeds, dairy products, meat and sugar monthly changes in the status of food price index, in January this year rose to 113.3, more than 6 years since July 2014 high; and last December figures revised upward to 108.6.
Supply side, the United States grain production is lower than expected; South America corn and soybean major production areas long drought without rain, has caused supply doubts, and wheat exporters such as Russia may impose export tariffs on wheat, at the same Time, China continues to buy large quantities of grain, all of the above are accelerating the rise in international food prices, global food prices have risen for eight consecutive months, the longest rising wave in 10 years.
As for logistics also face huge challenges. International Grains Association (IGC) data show that because of continued disruptions in transport, grain and oilseed freight has soared to the highest level in October 2019.
FAO economist Abbassian (Abdolreza Abbassian) even said that poorer food importers may be challenged, the key to future changes in international food prices is whether China’s demand continues to increase rapidly, if the mainland suddenly does not buy, global food prices have the opportunity to back to soft.
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