The New York Times reports that “bad harvests and attacks on trade passages threaten to drive food prices higher.”
The article, which analyzes the current food price situation against the backdrop of compounded challenges, notes that while global grain stocks held by farmers, traders, and governments remain ample, smaller harvests are pushing prices higher. IFPRI’s Joseph Glauber commented that U.S. soft red wheat prices rose nearly 25% in the first seven months of the year, with hard red wheat prices increasing even more sharply. U.S. wheat stocks have also declined.
“It’s not a question of availability. It’s a question of affordability,” Glauber said. “Anybody who is selling wheat will profit from the higher price.”
Read the article in NYT (subscription required)
A free summary based on the original article is available here: NYT: Global grain exporters are suffering from war, drought, and trade disputes (LIGA.net, Ukraine)