Abundant supply
Wheat became cheaper by 10%
Global food prices are expected to decline in 2024, CNBC reports citing analysis by Oxford Economics. Our main forecast is for global food prices to decline this year, which will reduce pressure on retail food prices, the economic analysis firm said.
The main driving force behind this expected decline is the “abundant supply” of many important crops, especially wheat and corn. Bountiful harvests in recent months of the two main crops have led to a drop in stock prices.
Wheat futures are down nearly 10% since the start of the year, and corn futures are down 6%.
Farmers have increased wheat and corn production due to higher prices since the start of the war in Ukraine. As a result, the global corn crop for the marketing year ending August 2024 is likely to reach record levels. The wheat crop will also be high, although slightly below the record level in the 2022-2023 marketing year.
Wheat and maize, along with rice, account for more than half of the world’s caloric intake. This means that the direction of their prices will have a decisive impact on the food budgets of consumers around the world, according to the report.
