[Epoch Times November 08, 2021](Epoch Times reporter Li Xin compiled a report) The bumper harvest of soybeans and corn in the United States and Brazil’s suitable weather for planting are supporting the supply of these two global commodities and will effectively alleviate the current supply. The pressure of soaring world food prices.
According to a report by Reuters on November 8, farmers, brokers and analysts said that increasing inventories indicate that the prices of these key crops, as well as other major foods such as sugar and coffee, may have been in the price spike caused by the COVID-19 epidemic. reach the peak.
According to data released by the Food and Agriculture Organization of the United Nations (FAO) last week, the global food price index has risen by more than 30% in the past year and is currently at the highest level since July 2011.
In the past 18 months, reduced supply and strong global demand for crops have driven food inflation and raised concerns about supply shortages.
Lower prices of soybeans and corn will reduce the cost of raising livestock for meat production, but falling prices may threaten farmers’ profits, especially after seed and fertilizer companies’ price increases lead to higher crop input expenditures.
Since reaching the highest point in nearly 10 years in May, soybean futures prices on the Chicago Board of Trade have fallen by 27% and corn futures prices have fallen by 24%, as the near-perfect planting conditions in most parts of the United States have resulted in a bumper harvest for these two crops.
However, because the northwestern United States and Canada are still suffering from historical droughts, and due to the La Niña climate phenomenon, the dry weather there may continue, and the prices of oats, wheat and rapeseed will continue to remain high, which means Food inflation is far from over. Wheat futures have recently surged to their highest point in nine years.
The soybean market has the greatest pressure on profits, as prices are pushing down because of increased supply and concerns that China (the CCP) demand will cool.
Since the US Department of Agriculture gave its preliminary forecast for the current marketing year in May, it has raised its forecast for world soybean supply every month. If the current forecast of 104.57 million tons is realized, then this will be the second largest record of world soybean stocks.
In recent months, as the world‘s largest buyer of soybeans, China has slowed down its purchases of soybeans because of its meager profits and its inability to squeeze soybeans into soybean meal and soybean oil to feed livestock. Analysts said that shipments to mainland China in 2021 may be less than 100 million tons due to the collapse of profitability in the pig industry and the sharp increase in the use of wheat for animal feed.
“Considering the current balance of supply and demand, I think the price increase has passed.” Brazilian grain broker Camilo Motter said. Brazil is the world‘s largest producer of soybeans, sugar and coffee.
After a difficult growing season, Brazil has the ideal weather for planting the next crop-prolonged drought, followed by plenty of rain, which helps to help the crop through the early stages of development.
Editor in charge: Lin Yan#
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