Wheat prices rise sharply, causing global panic

The Food and Agriculture Organization of the United Nations pointed out on the 24th that drought in Russia and floods in Pakistan have reduced grain production, and the Russian government has announced an extension of the ban on grain exports. International wheat prices have risen sharply in the past few weeks due to fears of food shortages, once again sparking fears of the global food crisis.

The Intergovernmental Group on Grain and the Group on Rice under the FAO held an emergency meeting in Rome on the 24th to explore effective measures to avoid soaring food prices.

FAO Director-General Diwoofu pointed out that the surge in international food prices from the second half of 2007 to 2008 triggered the global food crisis, and the aftermath has not yet been levelled, and international food prices have risen sharply recently, and there has been a trend of deterioration.

But he points out that the global food market has changed a lot from what it was three years ago. Global grain production is expected to reach the third-highest level in history this year; the world's grain inventory-to-consumption ratio (stock-to-use ratio) is now well above the nearly 20 per cent low set in 2007-2008 and far from reaching the internationally recognized 17 per cent warning line of 18 per cent.

In addition, other factors that led to the 2007-2008 food crisis did not exist at this time, and countries did not need to overreact, but should continue to pay attention to market developments.