UN Food and Agriculture Organization reports

UN Says Global Food Prices See Largest Jump in 2.5 Years, Led by Sugar, $6.8 Billion Hedge Fund Inflows

Oct 5, 2024, 07:30 AM

Global food prices experienced the largest increase in 2.5 years in September, driven primarily by a significant rise in sugar prices. This surge affected a broad range of commodities, including wheat and edible oil. The United Nations highlighted the sugar price spike as a major factor in the overall food price increase. Additionally, hedge funds made substantial investments, buying 187,000 contracts worth $6.8 billion during the last week's COT report window, marking the biggest weekly inflows in four years. Key drivers for these investments included Chinese stimulus measures, adverse weather conditions in Brazil, CTA trader buying, bullish seasonal turns, and new geopolitical risks in the Middle East.