Concerned about food supply crisis

DNHN - Supply was not only affected by the war, but also by the fact that production output did not grow quickly enough to keep up with the demand for goods.

Prices for wheat have risen across the world because of the conflict between Russia and Ukraine.

This was recorded from the last week of February 2022 to the first week of March 2022. 

CBOT's wheat futures contract for May 2022 has gone from 859.6 cents/bushel to the highest level of 1,363.4 cents/bushel in just two weeks. That's a 58% rise in just two weeks.

This price level is higher than it was in 2008, when the world's agricultural industry lost a lot of crops because of the La Nina weather.

When the US Department of Agriculture (USDA) released a report in March 2022, the figure it had thought about was down by 3 million tons, to 32 million tons, from the figure it had thought about in February.

Also, Ukraine's wheat exports are going to drop by 4 million tons, to 20 million tons. There has been a big drop in exports because of the war.

Ports near the Black Sea and the Sea of Azov have had exports stopped or completely stopped.

Supply was not only affected by the war, but also by the fact that production output did not grow quickly enough to keep up with the demand for goods.

According to the US Department of Agriculture, 778.5 million tonnes of crops were grown this year. There will be about 0.6 percent more demand for 787.3 million tons of food in 2021–2022.If the war factor isn't taken into account, the output is also 8.8 million tons short of what people want.

Current threats to global food security come from the fact that the Middle East and North Africa region needs a lot of wheat from the Black Sea region to get it from other places.

A lot of wheat has been coming from the Black Sea for a long time. This is in the same way as Europe's dependence on Russian gas.

Poor people in the Middle East and North Africa will have to pay more for food, which could lead to social unrest.

Hong Hoa