The Intelligence from The Economist Cereal numbers: the fall in food prices
Sep 5, 2022
In this discussion, Mike Bird, Asia business and finance editor at The Economist, highlights the unexpected stability of global food prices, attributing it to resilient Russian wheat exports amidst the Ukraine crisis. Meanwhile, Slavea Chankova, health correspondent, tackles the alarming resurgence of polio in the West, stressing the urgent need for vaccination to protect vulnerable populations. They also delve into the chaotic landscape of viral food trends, focusing on the safety concerns surrounding the infamous 'Pink Sauce' and the challenges faced by cottage food producers.
AI Snips
Chapters
Transcript
Episode notes
Market Overreaction
- Financial markets, particularly commodity futures, may have overreacted to the conflict's potential impact on grain supplies.
- Speculative trading in these markets can further amplify price volatility, disconnecting them from underlying supply-demand fundamentals.
Russian Wheat Exports
- The decrease in prices can be attributed to strong Russian wheat exports, not the Black Sea grain deal.
- Russia's wheat harvest has been strong due to favorable weather, meeting continued demand from neutral countries.
Falling Food Prices
- Global food prices are at near record highs, raising concerns about affordability.
- However, some commodity prices, like wheat and corn, have retreated to pre-war levels.