Posted on Nov 12, 2021, 11:05 AMUpdated Nov 12, 2021, 6:58 PM
There are records that we would gladly do without, especially those that are fueling soaring food prices. On the Paris futures market, a ton of milling wheat soared to 297 euros at the close on Thursday, unprecedented. Same trend in the physical market, where the all-time high of 2011 was beaten in early November. At the port of Rouen, you had to pay 296 euros to get a ton. Elsewhere in the world, in Chicago or around the Black Sea, the price curve is also trending upward.
This inflation is the result of insufficient supply. After a catastrophic summer from a weather point of view, the production of the largest exporters in the world has not been there. In North America, heat has ravaged wheat fields. In Europe, bad weather at harvest time degraded the quality and quantity of the ears collected. In Russia – the world’s largest producer – the weather has played such bad tricks on farmers that Moscow is once again considering setting export quotas for the entire first half of 2022, as well as raising the taxes applied to these volumes.