Analysis of Influencing Factors of Grain Price Based on Financialization Perspective

Recently, under the influence of a loose monetary environment, epidemic impact, Russia-Ukraine conflict and other factors, international food prices have risen sharply and fluctuated abnormally. This also poses a serious challenge to world food security. It is of great significance to analyze the influencing factors of grain price and put forward corresponding countermeasures. Based on the long-term observation of international food price fluctuations, this paper carries out a typical analysis of four rounds of sharp increases in food prices since 1990. By analyzing various influencing factors, this paper concludes that the structural imbalance of grain supply and demand and the financialization of grain are the two core factors that lead to the sharp rise of international grain prices. By summarizing many factors that led to the rise of grain prices, this paper further summarizes the imbalance of grain supply and demand structure and grain financialization. There is a strong negative correlation between food supply and international food prices. There is a strong positive correlation between grain demand and international grain price. There is a strong positive correlation between financial liquidity and international food prices. There is a strong positive correlation between capital speculative power and international grain prices. On this basis, this paper puts forward some policy suggestions for ensuring China's food security.