EDITOR NOTE: As inflation ravages food prices across the globe, the season of bad weather has arrived, stymying grain crop production and further straining the already-strained stockpiles amid rising food demand. Grain prices have been surging over the last month, driving up prices beyond the affordability level in many emerging countries. As the healthcare crisis gets its second wind, there’s certainly more pain to come, and more fiscal spending to bring it temporary relief--more damage to the global economy...all but guaranteed.
Global food prices remain on a tear as tightening crop markets boost grain costs by the most in eight years.
A United Nations gauge of food prices rose for a fifth month to the highest since January, nearing a multiyear peak set just before the coronavirus crisis took hold. Last month’s increase was largely fueled by a rally in grains, with the UN’s Food & Agriculture Organization cutting estimates for crop production and stockpiles as adverse weather threatens corn and wheat supplies.
Rising food prices risk pushing up inflation and come as economies are struggling with the pandemic and many nations contend with a hunger crisis. Agricultural commodity buyers from Egypt to Pakistan have been boosting purchases of grains in efforts to protect themselves from potential supply chain disruptions, keeping inventories in key exporting nations under pressure.
Originally posted on Bloomberg