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Friday, December 3, 2021
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Global Food Prices on the Rise Stoking Inflation

#food #commodities #inflation

$DIA $SPY $QQQ $RUTX $VXX

The global food-price rally that is stoking inflation and hitting consumers around the world shows little sign of slowing in here“– Paul Ebeling

Even with grain prices paused on good crop prospects, a United Nations gauge of global food costs rose for a 10th month running in March to the highest since Y 2014. Last month’s advance was driven by a surge in vegetable oils on stronger demand and tight inventories.

Food prices are in the longest rally in more than 10 yrs on China’s crop-buying and tightening supplies of many staple products, threatening faster inflation.

Breakdown of March’s food costs:

  • The FAO’s food price index rose 2.1% from February.
  • Vegetable Oil prices + 8% to the highest since June 2011.
  • Meat and dairy costs rose, boosted by Asian demand.
  • Grains and sugar prices fell.

Grains prices recently climbed to multiyear highs as China imports massive amounts to feed its pig herds that are recovering from a deadly virus. But, there are signs that tight supplies will get some relief from upcoming wheat harvests in the Northern Hemisphere. Overall though, supplies for now are adequate.

Thursday, the benchmark US stock market indexes finished at: DJIA +57.31 at 33503.57, NAS Comp +140.47 at 13829.34, S&P 500 +17.22 at 4097.17

Volume: Trade on the NYSE came in at 851-M/shares exchanged

HeffX-LTN’s overall technical analysis of the major US stock market indexes is Very Bullish in here.

  • Russell 2000 +13.6% YTD
  • DJIA +9.5% YTD
  • S&P 500 +9.1% YTD
  • NAS Comp +7.3% YTD

Looking Ahead: Investors will receive the Producer Price Index for March and Wholesale Inventories for February Friday.

Have a healthy day, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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