According to the latest data, food prices in September showed the highest growth since 2022.
September this year turned out to be the month during which the UN Food Price Index (FAO) increased significantly.
At the moment, it has reached 124.4 points.
For comparison, in August it was at the level of 120.7 points. Experts emphasize that this is the most significant monthly increase since March 2022.
It is interesting that prices have increased for almost all types of agricultural products.
Grain was one of the leaders in growth. In August, the food price index for it was about 110 points, but in September it exceeded 113 points.
Experts explain that this may be due, in particular, to today’s unfavorable weather conditions in Canada and the European Union.
The high level of humidity established in many regions of these countries threatens a good harvest, which in the future may cause a shortage in the markets.
As for corn, there are problems of a different kind: in many rivers in Brazil and the United States, which are important transport arteries, the water level has dropped, which creates problems with logistics and may be the reason for cargo delays, including corn.
At the same time, wheat prices, despite this, are not growing, but declining.
To some extent, this can be explained by the fact that due to geopolitical instability in many regions of the world, there was a sharp increase in prices earlier, but now, it seems, we are dealing with a correction.
In addition, good harvests in many wheat-producing countries this year could also reverse the downward trend.
The UN notes that in the coming years, most likely, world grain prices will remain stable.
Moreover, the decline may continue until 2033, however, as the most important conditions for such a scenario, analysts note both the preservation of average yields in most countries at today’s level and the absence of new serious geopolitical challenges.
At the same time, it is possible that the driver of price growth in the future may be the rise in production costs and general inflation, which is currently quite high in many countries.
Russia is currently fully self-sufficient in grain and is interested in exporting surpluses.
However, experts note that a discount of $20-30 dollars per ton is too much, and a high export duty further reduces the ability of farmers to make a profit.
