Food Commodity Markets Change Due To Unfavorable Weather
American oranges have been destroyed by a series of storms and dangerous diseases, and cacao beans in West Africa have perished due to excessive rains.
Recently, rice in Asia reached its highest price in nearly 15 years, while hog prices in China have fallen so far that they have caused inflation to become negative.
Bad weather has wreaked havoc on global food crops
On July 28, orange juice futures reached a record high as citrus farms throughout the US were devastated by a string of storms and the emergence of "citrus greening," an insect-borne, incurable disease.
In addition to unfavorable weather, the pathogen's return has decimated crops in both Brazil and America.
According to statistics from Barchart, cocoa bean futures soared to their highest prices since 2011.
The beans, primarily used in chocolate, are on the upswing despite a supply shortage brought on by prolonged wet weather and the spread of a disease known as "black pod" in West Africa that has rotting cocoa pods.
Cocoa bean crops are affected by unfavorable weather
According to Barchart, the global cocoa market may enter a third year of deficit for the 2023–24 season as a result of reduced crop quality and production due to the spread of the blight brought on by the exceptionally rainy weather.
Due to unusually dry conditions in Thailand and India as well as the country's embargo on its own exports, rice has not been this costly in over 15 years.
Statistics from the Thai Rice Exporters Association showed that the price of Thai white rice that is 5% broken has reached $648 per ton, the highest price since October 2008.
Thai farmers are being urged to switch to cultivating crops that require less water when El Nio, in which the water temperature in the Pacific Ocean rises, begins.
While India, another important producer, extended its export prohibition last month to preserve local supplies, raising concerns about a supply crisis.
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