GuangzhouChina Jan. 24, 2011 - At present, short supply of agricultural products is becoming more serious due to frequentabnormal climate in the world. It is estimated that agricultural product price will continue to be up in the short term.
Abnormal climate has always been the biggest factor in agricultural production, for climate change affects the harvest of crops. Snowy weather affects the production and transport of agricultural products in some areas in China. The average wholesale prices of various vegetables increase by 6.2% in 2010, especially cucumber and lettuce, with over 10% increase. The retail price of rice and flour continues to increase, up 0.4% and 0.2% respectively.
In the international market, the flood in Australia affects the output of cotton and sugar, which causes the price of cotton and sugar continue to increase. Cotton production decreased more than 10 million tonnes caused by this flood. In addition, it results in the output of raw sugar decline, causing a corresponding reduction in raw sugar exports.
Under the influence ofLa Nina, the short supply of palm oil has been attracted more attention in Southeast Asia. It may cause the price of palm oil continue to increase in the first quarter of this year.
Furthermore, one of the key points is that global economic recovery increases demand for commodities. Another key point is that easy monetary conditions and appropriate exchange rates may lead to the market's bull run, which can promote domestic and international prices of agricultural products to reach a high level.
Source: CCM International