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Wheat, corn and palm oil futures have fallen, but retail prices remain elevated.
Production of staple foods such as rice and wheat is unlikely to replenish depleted stocks in some parts of the world, at least in the first half of 2023, while edible oil crops suffer from adverse weather in Latin America and Southeast Asia .
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“The world needs record harvests to satisfy demand. In 2023, we absolutely need to do better than this year,” says Ole Houe, director of advisory services at agricultural broker IKON Commodities in Sydney. The expert believes that it is highly difficult to replace this global production, at least for now.
Wheat, corn and palm oil futures have fallen, but prices in the retail market remain elevated and tight supply is expected to remain until next year. Benchmark Chicago wheat futures jumped to an all-time high of US$13.64 a bushel in March after Ukraine's invasion of top grain exporter Ukraine reduced supply in a market already hit by adverse weather and post-pandemic restrictions.
By: Iara Siqueira | agrolink
