FoodGlobal: Corn and Soyabean: World moves into a great food-price shock
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World moves closer to food price shock |
The world has moved a step closer to a food price shock after the US cut stock forecasts for key crops, sending corn and soyabean prices to the highest level in 30 months -- posted by Politicarp update [jan14,2k11] Kenneth Anderson, Volokh Conspiracy Posted: 14 Jan 2011 09:22 PM PST (Kenneth Anderson)In conversation with someone who, as a senior NGO executive in international development and food aid, is well situated to respond on the question of rising commodity prices for food globally. I asked specifically about the Wall Street Journal news story a few days ago on this topic, which reported: Prices of corn and soybeans leapt 4% Wednesday and wheat gained 1%, continuing the broad rally in commodity prices that began in June. With yesterday’s gains, prices of corn futures contracts are now up 94% from their June lows; soybeans are up 51% and wheat is up 80%.I was told that, if anything, this article understated the problem, at least if consumers in poor countries were taken into account and that food riots akin to those of 2008 would be unsurprising. I was asked in turn why the US continues to subsidize ethanol, for which I had no good answer. (See also this story, HT Insta, and commenters are correct to note the Tunisian food riots.) |
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