Grain markets at ‘pivot point’, global food security could ‘take years’ to return as war and weather hurt supplies • Farm Policy News

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Bloomberg writers Kim Chipman, Eleanor Song and Tarso Veloso Ribeiro reported yesterday that “global grain markets are at a turning point, with prices finally starting to decline after a staggering spike earlier this year.”

Bloomberg editors explained that “Russia’s invasion of Ukraine has stifled exports from a region known as the world’s breadbasket. The disturbance sent crop futures to near record highswith extremely tight stocks. This is on top of runaway food inflation and raising fears of a global grain shortage.

Markets have finally begun to calm in recent weeks on optimism that key producers like Australia and the United States will reap large enough crops to help rebuild war-pinched supplies.

“But in order to contain food inflationeach US bushel acre should see maximum yield potential. And every bushel of grain will count.”

“America’s Farmers Battle Floods and Heat in a Effort to Replenish Food Supplies,” by Kim Chipman, Eleanor Song, and Tarso Veloso Ribeiro. Bloomberg News (June 29, 2022).

Chipman, Song and Ribeiro added: “There are also concerns about drought this summer for parts of Iowa and Illinois, shows a US government perspective. This could further endanger yields, as climate change makes extreme weather events more likely and more severe.

“Already, scorching heat in parts of the Midwest mean farmers may have ‘lost the upper part of the yields and productivity,” said Mark Licht, a professor at Iowa State University.

“The market will receive a further acreage update on Thursday when the U.S. Department of Agriculture releases the results of its planting survey along with its quarterly grain inventory estimates.”

Also this week, Reuters editors Karl Plume and Rod Nickel reported that “The Russian invasion of Ukrainea major agricultural exporter, sent wheat, soybean and corn prices near record highs earlier this year. Bad weather also reduced grain harvests in China, India, South America and parts of Europe. Fertilizer shortages meanwhile, yields of many crops around the world are reduced.

The world may never have seen this level of simultaneous agricultural disruptionaccording to agricultural leaders, industry analysts, farmers and economists polled by Reuters, which means it may take years to restore global food security.”

And Jesse Newman and Patrick Thomas reported in the Wall Street Journal on Wednesday that “War and Weather are jeopardizing global food supplies, say US officials and agricultural leaders, as rising food prices drive shortages and protests around the world.

The Wall Street Journal (page A9, June 29, 2022).

“The pressures are on this year as conflict in Eastern Europe is disrupting exports from Ukraine, one of the world’s leading grain producers, and drought and bad weather afflict the main growing regions.

Reuters writer Maximilian Heath reported yesterday that “Argentina recorded a record wheat harvest of 22.4 million tonnes in 2021/22, so world grain markets have hoped the country could help fill the gap of grain lost after Russia invaded Ukraine. The conflict between the two main wheat exporters has caused prices to soar.

“But now Argentina’s two main grain exchanges, Buenos Aires and Rosario, have cut forecast for wheat sowing and warned of further cuts if the weather does not improve.

Nevertheless, a separate Reuters News article yesterday reported that “Russia-focused agricultural consultancy Sovecon said on Wednesday it had raised its forecast for Russia’s wheat exports in July-June from 300,000 tons to a new record of 42.6 million tons.

Also yesterday, Wall Street Journal writers Jon Emont and Suryatapa Bhattacharya reported that “Russia’s invasion of Ukraine has driven up food prices around the world, but the situation is less grim in Asia. thank you rice.

“After successive exceptional harvests, rice has become a rare foodstuff which has generally been cheaper this year than it was last year. This is good news for billions of people which live throughout Asia where grain is a popular staple, from India to Thailand, Vietnam and Japan. The region encompassing South, Southeast and East Asia produces and consumes more than 80% of the world’s rice, according to data from the US Department of Agriculture.

Elsewhere, New York Times writer Michael D. Shear reported this week that “the United States and its Group of 7 allies pledged Tuesday to spending $4.5 billion this year to help ensure food security worldwideseeking to counter global food shortages caused by Russia’s invasion of Ukraine.

“G7 leaders said in a statement that the money would be used to ease what they called a ‘multidimensional crisis‘ who left as many as 323 million people in the world at high risk of food shortages, a recording.”

And Reuters News reported yesterday that “the head of Russian diplomacy told the United Nations Secretary-General on Wednesday that the country is ready to coordinate its efforts to reduce the threat of a global food crisis,” the Russian Ministry of Foreign Affairs said. Foreign Affairs.

Meanwhile, Bloomberg writers Megan Durisin and Abdel Latif Wahb reported today that, “Egypt has reserved the most wheat in a tender for at least a decadetaking advantage of a recent price slump to bolster stocks as Russia’s invasion of Ukraine disrupts global supply.

“The country’s public buyer bought 815,000 tons on Wednesday, largest single purchase since at least 2012data compiled by Bloomberg show.

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