First of all, the changes in world food supply and demand. Since 2003, the world economy has maintained a growth rate of 5% for four consecutive years, and the economic growth of emerging market countries and developing countries has accelerated, which has stimulated global consumer demand and investment demand and will inevitably have a general pulling effect on the prices of goods and services. The growth and increment of world grain production is lower than that of grain consumption. The increase in global market demand will naturally drive up food and food prices.

Second, the rise of biofuels has also strongly stimulated the rise of world food prices. Since 1970s, many countries have used a lot of corn to produce fuel ethanol and vegetable oil to produce biodiesel. Fuel ethanol takes away human food and animal feed. At the same time, the rapid development of biodiesel is the pulling factor leading to the rise of oil prices. In recent years, the world has consumed a lot of vegetable oil to produce biodiesel.

Third, serious natural disasters. This is the direct cause of the soaring world food prices.

Fourth, the grain stocks have fallen sharply, which has seriously weakened the function of the grain price stabilizer in regulating and stabilizing the market.

Fifth, international capital speculation. This has led to the soaring world food prices. As a commodity, grain has increasingly become an important target of international speculative capital speculation. Since 2007, affected by the subprime mortgage crisis in the United States and other factors, the risks of investment products such as securities and bonds have increased, and some international speculative capital has turned to the grain market with rising food prices. It is expected that the dollar will continue to fall, which will push the price of food denominated in dollars to rise further.

The above is the analysis of Mr. Ding from the Academy of Sciences of the State Grain Administration for your reference.