empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
04.11.2021 09:23 PM
Cost of food commodities rises again, holding new records
Open trading account Open demo account

The UN Index, which tracks essential foods from wheat to vegetable oils, rose as much as 3% in October, indicating a new ten-year high. At the same time, the threat of further increase for end consumers, who are already facing the challenges of a new COVID-19 outbreak, remains at its highest.

Global food prices rose again last month, threatening the economy with new records, and increasing the momentum of consumer price increases.

Poor weather conditions this farm year have hit crops around the world. Besides, transportation costs skyrocketed and labor shortages affected the food supply chain from farms to supermarkets. The energy crisis also had a negative impact on producers, forcing greenhouses to incur additional costs and causing an additional risk of increased fertilizer bills for farmers. Global hunger levels reached multi-year highs back during previous Covid-19 outbreaks and are at risk of rising again, updating its readings.

Abdolreza Abbassian, senior economist at the UN Food and Agriculture Organization said that the problem with materials and fertilizers and their impact on next year's crop was worrisome. He noted that by that time the market had accounted for most of the supply and demand issues. Abdolreza Abbassian added that the market had not considered next year's production prospects.

It means that market players are already aware of current prices. However, producers and investors are concerned about a combination of future factors, therefore futures may be volatile. It could heighten bank and investor fears about inflation

This image is no longer relevant

Some regions are likely to continue to face food security concerns. On Thursday, the UN raised its global wheat trade forecast to a record high as purchases in Middle Eastern countries from Iran to Afghanistan are rising. Drought has reduced crops, increasing reliance on imported grain. Besides, it occurs amid rising prices.

Abbassian said that it was the worst time for those countries as world prices were so high. However, he noted that people would not survive if 2022 turned to be a poor year for significant crops

The rise in prices harkens back to the tough years of 2008 and 2011, which contributed to the global food crisis. While it takes time for commodity costs to be reflected in supermarket prices, officials in regions like North Africa and Turkey are already struggling to protect shoppers from the blow.

According to the FAO, high farmers' costs could also stop cultivation of crops in the Northern Hemisphere, which are now planted. For example, the cost of nitrogen fertilizer hits producers hard, affecting the cost of production. Russia is going to introduce a six-month quota for these products.

However, there are signs that prices for some foodstuffs are stabilizing.

According to Abbassyan, last month, meat and sugar prices went down. Programs to offer consumers artificial meat are gaining support, although demand is falling.

The specialist believes there are enough global grain and oilseed stocks to meet demand, and prices for rice, one of the world's most important foods, remain low.

Abdolreza Abbassian said that people had better understanding what products they needed. He noted that uncertainty was probably decreasing.

Actually, that sounds rather uncertain. First, it is due to the fact that regulators do not have answers that will satisfy consumers and reassure producers. Food futures will rise in the coming days. Besides, this trend will likely continue until spring.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Forecast
USD/JPY: Simple Trading Tips for Beginner Traders for June 6th (U.S. Session) Trade Review and Tips for Trading the Japanese Yen The price test at 144.02 in the first half of the day occurred when the MACD indicator had already moved significantly
Jakub Novak
15:46 2025-06-06 +02:00
3370
Forecast
GBP/USD: Simple Trading Tips for Beginner Traders for June 6th (U.S. Session) Trade Review and Tips for Trading the British Pound The price test at 1.3546 in the first half of the day occurred when the MACD indicator had already moved significantly
Jakub Novak
15:43 2025-06-06 +02:00
2770
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Clash of the Titans: Musk vs. Trump as Investors Count Losses

Dow -0.25%, S&P 500 -0.53%, Nasdaq -0.83% Tesla Falls as Trump-Musk Public Feud Grows Initial Jobless Claims Rise for Second Week in a Row Adidas, Puma Shares Fall After Lululemon
Thomas Frank 11:45 2025-06-06 UTC+2

Diverging markets: US stocks stall, Asia accelerates

Dow: -0.22%; S&P 500: flat; Nasdaq: +0.32%. The US services sector contracted in May for the first time in nearly a year. CrowdStrike slumped on a downbeat revenue forecast
12:40 2025-06-05 UTC+2

US Market News Digest for June 5

Major US stock indices ended the trading session with minimal changes: the S&P 500 edged up 0.01%, the Nasdaq gained 0.32%, while the Dow Jones slipped 0.22%. Market participants adopted
Ekaterina Kiseleva 11:59 2025-06-05 UTC+2

US indices stall, Asia accelerates: what's happening in global markets

Dow -0.22%, S&P 500 flat, Nasdaq +0.32% Services sector shrinks in May for first time in almost a year CrowdStrike falls on pessimistic quarterly earnings forecast Fed lifts Wells Fargo
Thomas Frank 10:19 2025-06-05 UTC+2

Bitcoin's seesaw: to go on with uptrend or enter consolidation?

The first cryptocurrency, Bitcoin, is facing significant pressure, swinging between pullbacks from previous peaks and rallies toward new ones. Nevertheless, the flagship asset refuses to give in and continues
Larisa Kolesnikova 14:51 2025-06-04 UTC+2

US Market News Digest for June 4

Amid ongoing trade disputes and mounting fiscal concerns, US investors continue to adhere to a "buy-the-dip" strategy. Having reached new highs, the S&P 500 remains in the spotlight as market
Ekaterina Kiseleva 12:42 2025-06-04 UTC+2

Optimism in Markets: Dollar General, Pinterest, Wells Fargo Stocks Rise to Lift Indexes

Dow Up 0.51%, S&P 500 Up 0.54%, Nasdaq Up 0.81% Dollar General Advances on Year-Over Sales Target Pinterest Advances After JPMorgan Stocks Rise Wells Fargo Stocks Trade Higher After Asset
Thomas Frank 10:34 2025-06-04 UTC+2

Growth through worries: Markets rally, but manufacturing and Tesla stall

Indices: Dow flat, S&P 500 up 0.4%, Nasdaq up 0.7% Investors hope for trade talks despite Trump steel threat Tesla falls after reporting weaker May sales in some EU countries
Thomas Frank 11:41 2025-06-03 UTC+2

US Market News Digest for June 3

After gains in the previous session, US equity benchmarks, including the S&P 500 and Nasdaq, came under pressure as futures slipped amid lingering uncertainty over trade negotiations between Washington
Ekaterina Kiseleva 11:27 2025-06-03 UTC+2

Trump shakes Wall Street Again: market indices respond instantly

Trump's remarks on China stir volatile market moves. Ulta Beauty gains after raising its full-year profit forecast. The Dow edged up by 0.1%, the S&P 500 dipped 0.01%
12:44 2025-06-02 UTC+2

Top analytics

Relevance up to 23:00 2025-06-18 UTC--5
Trading Signals for GOLD (XAU/USD) for June 5-9, 2025: sell below $3,387 (21 SMA - 7/8 Murray)
06:36 2025-06-05
Technical analysis
Relevance up to 00:00 2025-06-20 UTC--5
Trading Signals for EUR/USD for June 6-10, 2025: buy above 1.1080 (200 EMA - 6/8 Murray)
07:04 2025-06-06
Technical analysis
Relevance up to 00:00 2025-06-20 UTC--5
Trading Signals for GOLD (XAU/USD) for June 6-10, 2025: buy above $3,365 (21 SMA - 7/8 Murray)
07:01 2025-06-06
Technical analysis
Relevance up to 23:00 2025-06-18 UTC--5
Trading Signals for EUR/USD for June 5-9, 2025: sell below 1.1474 (21 SMA - 6/8 Murray)
06:38 2025-06-05
Technical analysis
Relevance up to 02:00 2025-06-10 UTC--5
The Market Finds Good in the Bad
09:20 2025-06-05
Fundamental analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.