Worldwide Surging Food Prices: Bloomberg

The prices of wheat and rice have been surging in the spot and future markets. Countries that rely on imports must bear additional financial burden besides confronting COVID-19. The reasons for the price increases remain unclear, with analysis of the future markets’ influence, local supplies and panic buying underway. Anxiety over governments’ ability to control food prices and guarantee supply is spreading. Countries like Russia, Kazakhstan and Vietnam have restricted the export of crops to protect domestic food security. The price of rice exported from Thailand, the second largest rice shipper, has reached a six-year high. Meanwhile, high prices pose a threat to the political stability of those countries sensitive to price changes. An appreciating US dollar makes crops and other commodities more expensive. Also, a changing climate may lead to reduced production and spark further rises in food prices.– YaleGlobal