H
Harpy Eagle
Guest
Some welcomed good news for those not opposed to good news.
www.morningagclips.com
The price of wheat, corn and other commodities that make up the basis for much of the world’s food supply fell sharply over the summer.
It’s a welcome signal for consumers dealing with high grocery bills and investors hoping to see inflation loosen its grip on the broader economy. Wheat prices are down roughly 40% and corn prices have slipped about 25% since the spring.
“It should help, it’s just a question of how long that is sustainable,” said Tom Martin, senior portfolio manager with Globalt Investments. “As we slow down, and the economy seems generally to be slower, you get less inflationary pressures.”
Surging food and energy prices have fueled the hottest inflation in four decades this year. Steady demand combined with constricted supplies started inflation on its upward path. Russia’s invasion of Ukraine in February worsened things by choking off production and exports of wheat and other crops, along with oil and natural gas.
Now prices are falling as supply and demand start to balance out amid the global economic slowdown. Ukraine and Russia have reached a deal on grain exports, helping to further ease global supply shortages. Ukraine exports roughly 10% of the world’s wheat and corn.
The U.S. Department of Agriculture forecasts higher wheat production this year and the potential for a record soybean harvest.
Food commodity prices slim down over the summer
WASHINGTON — The price of wheat, corn and other commodities that make up the basis for much of the world’s food supply fell sharply over the summer. It’s a welcome signal for consumers dealing with high grocery bills and investors hoping to see inflation loosen its grip on the broader economy...
www.morningagclips.com
The price of wheat, corn and other commodities that make up the basis for much of the world’s food supply fell sharply over the summer.
It’s a welcome signal for consumers dealing with high grocery bills and investors hoping to see inflation loosen its grip on the broader economy. Wheat prices are down roughly 40% and corn prices have slipped about 25% since the spring.
“It should help, it’s just a question of how long that is sustainable,” said Tom Martin, senior portfolio manager with Globalt Investments. “As we slow down, and the economy seems generally to be slower, you get less inflationary pressures.”
Surging food and energy prices have fueled the hottest inflation in four decades this year. Steady demand combined with constricted supplies started inflation on its upward path. Russia’s invasion of Ukraine in February worsened things by choking off production and exports of wheat and other crops, along with oil and natural gas.
Now prices are falling as supply and demand start to balance out amid the global economic slowdown. Ukraine and Russia have reached a deal on grain exports, helping to further ease global supply shortages. Ukraine exports roughly 10% of the world’s wheat and corn.
The U.S. Department of Agriculture forecasts higher wheat production this year and the potential for a record soybean harvest.
