Posted: 4/7/2011 9:51:16 AM EDT
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Just thought we should get some positive news every now and then. I know its mixed with a warning (what UN release isnt), but lets be positive.
Food prices fall from record highs, says UN food agency
Global food prices fell in March after eight months of rising to record highs, according to the United Nations' Food and Agriculture Organization (FAO). Its index of global food prices, which measures monthly changes for foods including cereals, meat and sugar, averaged 229.8 points in March, down from February's record of 236.8 points. Unrest in the Middle East and the natural disaster in Japan dented demand for grain, depressing the price. The UN warned the fall could be a blip. A top official at the agency told the Reuters news agency that global food prices were expected to begin rising again soon as demand begins to bounce back. Concepcion Calpe, senior economist at the UN's FAO, said: "We believe that in the next few weeks, and there are already signs of it, prices will rebound." Grain imports have been disrupted for key customers in areas such as North Africa and the Middle East, as well as Japan. Grain is not just used for food, but for livestock feed and biofuels, and demand for all three is rising globally. Soaring oil prices also push food prices higher as they increase the cost of food products and boost demand for biofuels further. |
| There are two things that set the price on things like food and oil real factors and speculators. Speculators are behind most of the recent increases of both. The real factors are lurking in the background. That's why we have the up and down gas pricing. Speculators drive it way up and then it goes down a bit but never to the level it was before which is the price determined by real factors. |
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Big article in the NYT today about global food shortages due to biofuels.
Of note, the fact that after flirting with corn-based ethanol, China banned the practice in 2007. Now they import 98% of Thailand's cassava production for that purpose. You guessed it, causing shortages and price increases in Thailand. Backing off from record highs means nothing but the commodity remains scarce and hence, expensive. |
| Food prices are up and will stay that way. There is no choice but for prices across the board to be way up with the cost of fuel through the roof and the insistance of our assinine goverment to burn corn as fuel instead of using it for food. I just wonder where it will peak out at? |