Individual Report: Food Prices, Wheat, and Oil Price Changes

This report provides an in-depth analysis of food prices, concentrating on the price fluctuations of wheat and oil over the past decade. It begins with an introduction to consumable goods and the food industry, followed by a discussion on wheat as a key food commodity. The report presents statistical representations of wheat and oil price changes over ten years and explores the correlation between them. It also examines other factors influencing wheat prices, such as climate change, imports/exports, and demand/supply dynamics. The core economic concepts of demand and supply, as well as elasticity of demand and supply, are analyzed. The report further investigates how substitute and complementary commodities impact wheat prices. The conclusion summarizes the interlinked nature of various industries and businesses and their influence on each other, particularly the impact of the oil industry on the agricultural sector and the demand and supply of wheat. References from relevant studies are also included.

Individual Report
(Food Prices)

 INTRODUCTION
 Discussion of a Food commodity
 The price change Wheat in past 10 years with statistical representation
 The price change of Oil in past 10 years with statistical representation
 Link between price change in Wheat and Oil
 Other factors that are affecting the world food prices of Wheat
 The concept of demand and supply analysis
 The concept of elasticity of demand and supply
 Substitute and complementary commodities or products have impacted on the
price of Wheat
 CONCLUSION

Table of Content

Consumable goods are those products that are provided to customers and
people for consumption and also known as final goods. These products are the
final products and results of manufacturing and production which are used by
consumers to fulfil their daily needs and will be stocking up in store shelf by
making bulk purchases. The examples of these consumer goods are clothes, food
and jewellery. Food industry is evolving and known as highly developing sector
in the market. The evolution and development of the industry brings in price
fluctuation in different products belonging to the sector and creates variation. The
present report is related to the shift taking place from past 10 years or a decade in
food prices and the prices of respective chosen commodity that is wheat.
Introduction

Discussion of a Food commodity
The chosen Food commodity for the
entire project is wheat one of the
basic food product which is used by
all different people belonging to
different communities, region and
places around the globe. Wheat is a
nutritious food source and a green
which is grown in variety of
different climates and soils.

The price change of Wheat in past 10
years statistical representation

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The price change of Crude Oil in past 10
years statistical representation

Continue…

Oil prices also referred as energy price which are highly impactful
and influential on food prices for commodity prices. According to several
research and development is determined that currently the global food system
is highly dependent upon fuel and transport. This means the hike in fuel
prices automatically leads towards increment in food or commodity prices
which is being transported. In recent years there is a huge change in fuel
prices and it is determined that in a few years it will become less affordable
making the highly fuel dependent agricultural production system secured and
food products more and more expensive and even less affordable.
Link between price change in Wheat and
Oil

There are several different factors that affect wheat prices and
influence increase or decrease in the commodity. One critical factor is change
in oil prices either decrease or increase but there are some other factors as
well which affects the prices of beat around the globe. These factors are as
follows:
 Climate change
 Imports and exports
 Increasing or decreasing demand and supply of wheat globally
Other factors that are affecting the world
food prices of Wheat

The concept of demand and supply
analysis
The law or the theory of demand
and supply explain the interaction
and connection between the seller
and the buyer of respective goods
and services. The theory of demand
and supply define the effective
relationship between the price of the
product and the willingness of
people to buy or sell the product.

Elasticity is defined as the percentage change taking place in one thing
relative to the percentage change in another. The concept of elasticity depends
upon price elasticity of supply and demand. The price elasticity of supply is
defined as measurement of how responsive the market is to the changing prices.
And the price elasticity of demand is a measurement which reflects upon how
responsive the demand in the market is to the price changes.
In simple words, price elasticity of demand is denoted as the percentage
change in quantity demanded by people of wheat divided by the percentage
change in the price in which the product is being sold. The price elasticity of
supply is denoted as the percentage change in quantity supplied of wheat to
consumers divided by the percentage change in price of wheat.
The concept of elasticity of demand and
supply analysis

Substitute and complementary goods are two different categories
which can impose significant influence over prices of the effective
commodity.
Supplementary goods are defined as those products and services
which supports one another and I always used as a pair. For example, car and
fuel. Weed is an individual commodity which supplements other rocks and its
prices will be having negligent influence due to changes in supplementary
market.
Substitute and complementary
commodities or products have impacted
on the price of Wheat

From the above presentation it is concluded that several industries and
businesses are interlinked with one another in causing significant influence
over their operations and efficiencies by minute changes taking place. In the
above report food commodity prices are evaluated in concern with the
changes taking place in oil prices. It is determined that oil industry do have a
huge influence over agricultural industry and make significant changes in the
demand and supply of which used in commodity that is wheat because of
variations taking place in its prices.
Conclusion

Baffes, J. and et. al., 2018. The role of major emerging markets in
global commodity demand. The World Bank.
Haile, M. G. and et. al., 2017. Impact of climate change, weather
extremes, and price risk on global food supply. Economics of Disasters and
Climate Change, 1(1), pp.55-75.
Springmann, M. and et. al., 2017. Mitigation potential and global
health impacts from emissions pricing of food commodities. Nature Climate
Change, 7(1), pp.69-74.
Tigchelaar, M., and et. al., 2018. Future warming increases
probability of globally synchronized maize production shocks. Proceedings
of the National Academy of Sciences, 115(26), pp.6644-6649.
Zobel, E. H. and et. al., 2016. Global changes in food supply and the
obesity epidemic. Current obesity reports, 5(4), pp.449-455.
References

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