Bloomberg Agricultural Price Index grows at maximum rate

The Bloomberg Agriculture Spot Index (Agriculture Spot Index), which includes nine major products, is growing by almost seven percent every month, which has become the highest since the beginning of 2022. This is reported Вloomberg.

The rise comes as farmers from Brazil to Vietnam to Australia are battling floods and excessively dry weather that threatens sugar, grain and coffee production.

Chicago wheat futures rose in September on fears that bad weather in exporting countries could further reduce global stocks, which are already near a nine-year low.

Soybean futures may post their biggest monthly gain in two years as its top producer, Brazil, struggles with the worst drought in decades. In addition, fires that broke out in its sugarcane fields sent related futures up 17 percent.

Arabica coffee rose to its highest level since 2011. Cheaper Robusta coffee also suffered from bad weather and became almost as expensive.

In addition, palm oil supplies are dwindling in Southeast Asian countries. Aging trees are having an impact. As a consequence, futures have reached a five-month high.

All of this, the publication writes, means more problems along the supply chain – from farmers struggling with coffee bean theft to consumers shelling out more for burgers.

At the end of May 2024, the World Food Price Index was up nearly one percent from April’s reading of 120.4 points. At that time, the index had risen for the third month in a row.

Tags: prices