High prices of agricultural products in the world

The rise in agricultural product prices last month comes as farmers in countries such as Brazil and Australia suffer from floods and severe drought, threatening commodities such as sugar, grains and coffee.

Michael Whitehead, head of the agricultural business insights department at ANZ Holdings, said, according to what was recently published by Bloomberg: “We have recently witnessed a coincidence of weather events that led to higher prices, and the uncertainty about supplies forces buyers to pay a higher cost (push prices upward).”

This represents a shift from the beginning of this year, when food prices were largely stable due to abundant supplies and declining demand in major markets such as China. If this rise continues, it may be reflected in the prices of products for consumers in stores, according to what experts told the agency.

Analysts from JP Morgan said in a report last week that the drought affecting large parts of northern and central Brazil is likely to continue to threaten crops in the country, which is a heavyweight in the agricultural sector, and traders are monitoring tensions in the Middle East and the Black Sea and the extent of the impact of the election result. America’s upcoming trade relations with China.

It is noteworthy that global food prices began to rise since the beginning of the year 2021, as a result of the irresponsible policy followed by Western central banks during the past years, as they deliberately pumped tens of trillions of unbacked dollars, euros, and British pounds into Western economies, which fueled inflation.

Source: RT + Bloomberg