Touch the Soil News #1036 (Feature photo – Large Piles of Grain after Harvest in the U.S. – Public Domain)
Food prices (or the price of anything for that matter) are subject to a number of financial activities and maneuvers. These things can impact the ability of literally 1-3 billion people who are on the bottom end of earning power.
There are things like increases in interest rates that dampen spending power, currency speculation that can increase the cost of goods for people whose currency is weaker and commodity speculation that can literally make food on a dinner plate unaffordable – or so cheap that it puts farmers out of business.
There are two indicators that are like barometers that can be shadows of things to come. The first is a decline in the global grain stocks (think wheat, rice, corn, barley, oats and rye. The second is the World Food Price Index.
Recently there have been movements in these two areas. 1. Global grain stocks are estimated to be almost 7 percent less this year than last year. 2. Since January 2018, the World Food Price index (cost of food) is up almost 5 percent.