With more than 270,000 people infected and 11,000 dead, the corona pandemic paralyzes the global economy. Comparisons are made between World War II and the Spanish flu in 19918.
In an interview with Reuters, the chief economist at FAO Abdolreza Abbassian finds that large importers and millers and even governments support panic with their purchasing behavior. There is no supply bottleneck for cereals and oilseeds, but the changing purchasing behavior of consumers and governments could put food security at risk.
At the FAO headquarters in Rome, the question is what if the large groups of buyers believe that they will not get enough wheat or rice in May or June. This could lead to a supply crisis.
On the futures market in Chicago, wheat prices rose 6% last week; it was the biggest weekly gain in nine months. Today another 3% are added. Rice prices in Thailand, the second largest rice importer in the world, are currently the highest in 13 years.
French grain traders are in dire need of getting enough cargo space for their grain, which they want to export or to transport to domestic consumers.
Source
HANSA Terminhandel
