Food: prices are falling, but crop risks still exist

The Food and Agriculture Organization of the United Nations (FAO) recently announced that global food prices food in July they fell to their lowest level since January. However, food resources still face other risks.

A recent Bloomberg report warns that the possibility of droughts, floods and heat waves continues to limit supplies and drive up prices.

The agency warns that due to high temperatures, major manufacturers in the US, Brazil and Argentina are facing problems in the operation of their products. harvest.

In the 2021-2022 campaign alone, global corn and soybean production fell short of initial forecasts of 45 million tonnes. This keeps prices high.

For example, until last week, BCR data indicated that corn price It was $253.5 per tonne, 18.9% less than in June, but still 11.3% higher than the price recorded in December 2021.

Similarly, the price of soybean oil at the beginning of this month was $1,585.8/ton, down 2.2% from June but 10.6% above the international price at the end of 2021.

Due to the aforementioned problems with crops, Bloomberg indicates that this week the Department Agriculture The US lowers its corn and soybean yield forecast.

“Unlike in recent years, every bushel of production counts, and even a slight 1-2% decline in yields from the trend is worrisome given the current tensions in US and global balance sheets,” Ben Buckner, grain analyst at AgResource Co. ., — told the agency.

Only in Europe do they warn that the European Commission estimates that heatwaves could reduce Europe’s grain harvest. European Union by 5% compared to last season.

Earlier this month, the German Farmers’ Association (DBV) warned that the drought had cut grain harvests by 15% from normal levels.

On the other hand, in Morocco it was recently reported that this year’s grain harvest will fall by 67% due to drought, reaching just 3.4 million tons this year.