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The article suggests is due to rice replacing other grains in the global diet. Between Russia and the Ukraine 27% of the worlds wheat supply is impacted by the
by kasey_junk 4y ago
The article suggests is due to rice replacing other grains in the global diet.
Between Russia and the Ukraine 27% of the worlds wheat supply is impacted by the war and another 15% of the worlds corn.
It seems reasonable to conclude that would have an impact on the price of other grain staples.
- puzzlingcaptcha 4y agoAnd yet wheat futures (ZW) have been falling steadily for the past six months and are now below the pre-invasion levels.
- hef19898 4y agoprice =|= availability
- puzzlingcaptcha 4y agoThe very purpose of futures contracts is to ensure availability in the future at a predetermined price. I am not sure what your point is.
- hef19898 4y agoThat there is no guarantee that the stuff will be available so, thing shappen. Also, just because futures are cheap, doesn't mean stuff is available now or in the near future. It only means the markets think grain will be plenty at one point, and thus cheap.
- ta1243 4y agoAll a low futures price means is that money men are betting there won't be a shortage, it doesn't say anything about whether there will be a shortage or not.
- pfannkuchen 4y agoPrice is not solely determined by availability, but it is largely determined by availability, especially in the case of rapid shifts in availability (since other factors take time to adjust in response).
- kasey_junk 4y agoThat would imply that rice pressure would come down in the future easing the deficit (assuming global tastes haven’t permanently changed). The article mentions a surplus next year is anticipated.