The factors that affect the rise and fall of food prices are Many, such as market factors, capital speculation, national regulation, agricultural production costs, etc., it can be said that the rise and fall of food prices is a combination of these factors.
Agricultural production costs are one of the factors, but not the decisive factor, so talk about the inevitable connection, but there must be a connection.
①Market factors
This is the most important factor affecting the rise and fall of food prices, food still belongs to the essence of the commodity, therefore, with the most basic attributes of the commodity, its price fluctuations are also affected by the supply and demand relationship is the most influential.
(1) the domestic market supply
Take corn, for example, last year to this year, corn prices have risen sharply compared to previous years, the core or we really lack corn.
From the statistical data, 2020 ~ 2021 year, the corn gap in about 28 million tons, things are scarce. So the price of corn, soybeans and other prices have been rising again, this reason we all understand, no need for me to say more.
But let's look at rice, wheat, in fact, the price increase is not big or even the price of rice did not increase, why?
Because supply exceeds demand, China's rations are sufficient, but feed grain and industrial grain there is indeed a huge gap.
(2) International market supply
International food prices have also become an important factor affecting food prices in this country. The World Food Organization has repeatedly warned in 2020 that the world is in a state of food shortage.
Combined with the impact of the new crown epidemic, many food-exporting countries have begun to limit their own food exports, which has also contributed to the rise in domestic food prices.
In the current high degree of development of the global economy today, the international futures market food prices on domestic food prices is also increasingly obvious .
②Capital speculation
In fact, this year, corn, soybeans and other non-staple food prices and capital speculation also has a lot to do. One is the speculation of domestic idle capital, the second is the speculation of international food capital giants.
Every time there is a large fluctuation in food, there will be more idle capital into the field, after all, all want to ride the fire and get a piece of the pie.
In addition, we do not know, in fact, the international food capital is only in the hands of a few giants, including the United States ADM, the United States Bongi, the United States Cargill, France Louis D'Arcy, the four major grain merchants are the most famous. Their rise and fall of global food prices can be said to have reached the point where they only have a hand in the world.
3 national regulation
Grain belongs to the strategic reserve resources, food for the people. So it can not be left to the market and capital decisions, which is why, although imported food is cheaper than domestic food prices.
But the country is still implementing the policy of bottom purchase of the reason is to protect our food security is not threatened.
Of course, from the facts, we did manage to ensure the safety of food rations, although in the feed grain and industrial use is still restricted. But there is no way around it. You can't have both the fish and the bear's paw, and the lesser of two evils is the lesser of two evils.
4 Agricultural and other production inputs
The impact of food volatility, I put the importance of agricultural production inputs and so on last.
Too many axioms need not be said, take the facts, how much have the prices of agricultural products gone up in these decades? And how much have food prices gone up?
Just from this point on the impact on food prices is very small, but you can not say that there is no impact, either how to say that food prices restored to rise it!