Bloomberg writers Megan Durisin, Kim Chipman, Jen Skerritt and James Poole reported today that “As Russia’s invasion stifles Ukrainian wheat exports, driving up the prices of bread and noodles, the global harvest faces an additional test: extreme weather conditions.
“Droughts, flood and heat waves threaten production from the United States to France and India, composition decrease in production in Ukraine. Almost every major producing region faces some threat or another. The only notable exception is Russiawhich is shaping up for a bumper crop and should benefit from higher prices and limited supply elsewhere.
“Hot and dry weather is a growing concern” in the EUwhile the “drought [is] torments her WE central plains” and “[Canadian] growers are now trying to plant in fields that are either too wet or too dry,” the Bloomberg article states.
India faces “blistering heat”, while “there are concerns about [China’s] winter wheat after unusual autumn flooding.
The Bloomberg article added that “Russia also experienced favorable weather conditions and could harvest a near-record harvest.”
Meanwhile, Keith Bradsher reported in today’s New York Times that, “China’s winter wheat harvest next month is one of great uncertainties in a global economy already struggling with high commodity prices, especially in regions heavily dependent on crops from Russia and Ukraine.
If China’s harvest fails in the coming weeks, it could push food prices up even further, deepening hunger and poverty in the world’s poorest countries.
And Reuters writers Naveen Thukral and Hallie Gu reported today that “The wheat harvest in Argentina for the 2022/23 season should be around 19 million tons, down from 22.1 million tons harvested during the previous season, the Rosario Cereals Exchange (BCR) announced on Wednesday.
Specifically on production variables in the United States, Patrick Thomas and Kirk Maltais reported in today’s Wall Street Journal that “farmers are in a race against time to get their crops in the ground this week, with corn, soybean and wheat planting well behind their usual pace.”
corn belt #plant22 the windows are tightened. Hot and dry conditions in the central and eastern corn belt appear to be short-lived. Another round of active weather, heavy rain producing possible thunderstorms next week. The northern plains remain wet.
Probability of more than 1″ of precipitation in the next 10 days from EPS: pic.twitter.com/auKizoZ4vY
—Andrew Pritchard (@skydrama) May 11, 2022
And as for edible oils, Laura Reley reported in today’s Washington Post that “extreme weather and war in Ukraine have tight global supply of four most commonly used types of vegetable oil — staple ingredients as ubiquitous in home kitchens as they are in restaurants and packaged foods. In low-income countries, cooking oil represents one of the largest weekly expenses for poor and sour families.
As production variables shift in major global growth regions, US food prices continue to climb.
Rachel Siegel reported on the front page of today’s Washington Post that, “Inflation eased slightly in Aprilshowing some of the slowest gains since last summer, although it remains at its highest for 40 years and still has a long way to go before Americans feel relieved.
“Data released Wednesday by the Bureau of Labor Statistics gave policymakers nascent hope that soaring inflation could begin to slow: prices pink 8.3 percent in April compared to a year ago, and 0.3 % compared to the previous month. On the other hand, March the prices were raised 8.5 percent over the previous year, and a stronger 1.2 % compared to the previous month.
Here’s where Americans are seeing big price jumps:
Gas +44% y/y
Utility Gas 23%
Used cars 23%
New cars 14%
Health insurance 10%
— Heather Long (@byHeatherLong) May 11, 2022
“The food index increased by 0.9% in April compared to March, his 17th consecutive monthly increase,” the Post article said.
Bloomberg writer Zijia Song reported yesterday that “Egg prices soar in new US inflation datapushed by a deadly bird flu that has killed nearly 10% of the country’s chickens, adding to already rising food prices.
“A dozen eggs in the grocery store cost 23% more in April than in March, $2.52. It’s the largest increase among consumer products tracked by the US Bureau of Labor Statistics, in a report released Wednesday.
Also yesterday, Reuters editors Trevor Hunnicutt and Jarrett Renshaw reported that “US President Joe Biden Wednesday blamed Russia’s war on Ukraine for the latest global food price spike and visited a family farm in Illinois where he pledged to support farmers across the country as they seek to fill the supply gap.
The Reuters article explained that “The White House on Wednesday announced actions to help American farmers boost food production and reduce food prices, including doubling funding for domestic fertilizer production and increasing technical assistance for nutrient management tools.
“The administration will also increase the number of counties eligible for double crop insurance for planting a second crop on the same land in the same year, the White House said.”