If You Still Don't Think The Weather Is To Blame For Grain Prices, See This Chart

From Morgan Stanley, a great chart comparing grain prices to an index of extreme weather activity.

It’s fairly hard to deny.

weather grain

Photo: Morgan Stanley

And from the same report, just a one-week look at Chinese food prices tells a similar story. The one group that saw weather return to normal recently saw its price gains moderate.

*  Thanks to the alleviation of drought in Northern China, grain prices—that only edged up by 0.22ppts–stabilised in the first 10 days of February.

* Chinese New Year and cold weather continued to fuel the increase of meat prices, especially pork prices.

* Vegetable  prices continued to jump on the back of New Year effect and lagged effect from supply disruption by the icy rain in Southern China.

chart

Photo: Morgan Stanley

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