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World braced for new food crisis
Financial Times ^ | July 19, 2012 | Jack Farchy and Gregory Meyer

Posted on 07/20/2012 7:24:27 AM PDT by Perseverando

The world is facing a new food crisis as the worst US drought in more than 50 years pushes agricultural commodity prices to record highs.

Corn and soyabean prices surged to record highs on Thursday, surpassing the peaks of the 2007-08 crisis that sparked food riots in more than 30 countries. Wheat prices are not yet at record levels but have rallied more than 50 per cent in five weeks, exceeding prices reached in the wake of Russia’s 2010 export ban.

The drought in the US, which supplies nearly half the world’s exports of corn and much of its soyabeans and wheat, will reverberate well beyond its borders, affecting consumers from Egypt to China.

“I’ve been in the business more than 30 years and this is by far and away the most serious weather issue and supply and demand problem that I have seen by a mile,” said a senior executive at a trading house. “It’s not even comparable to 2007-08.” More video

David Nelson, global strategist at Rabobank, added: “Today the [US crop] disaster is real, whereas to some degree the big run-up in prices in 2008 was speculatively driven.”

José Graziano da Silva, director-general of the UN’s Food and Agriculture Organisation, told the Financial Times: “I am certainly concerned about the recent rises in food commodity prices, given their potential implications especially for the vulnerable and the poor, who spend as much as 75 per cent of their income on food.”

In 2007-08, a rise in prices triggered food riots from Bangladesh to Haiti as the number of hungry people in the world surpassed 1bn. However, economists point out that supplies of rice and to a lesser extent wheat – key staples for many of the world’s poorest people – remain abundant, subduing prices.

(Excerpt) Read more at ft.com ...


TOPICS: Business/Economy; Foreign Affairs; Government; News/Current Events
KEYWORDS: commodities; corn; crops; drought; famine; food; usda

1 posted on 07/20/2012 7:24:38 AM PDT by Perseverando
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To: Perseverando

As long as we have enough CarterOil for our gas tanks. Perhaps our Premier could stop the ethanol production to save the poor?

Pray for America


2 posted on 07/20/2012 7:35:59 AM PDT by bray (If you vote for a Communist, what's that make you?)
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To: Perseverando
The drought in the US, which supplies nearly half the world’s exports of corn and much of its soyabeans and wheat

Is this the same U.S. hated and complained about by most of the world?

3 posted on 07/20/2012 7:37:29 AM PDT by Vinnie (A)
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To: Perseverando

Obama and Comnie Company suppose to launch a manufactured crisis.


4 posted on 07/20/2012 7:38:00 AM PDT by freekitty (Give me back my conservative vote; then find me a real conservative to vote for)
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To: bray
stop the ethanol production to save the poor

great idea

5 posted on 07/20/2012 7:53:50 AM PDT by ncpatriot
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To: bray
As long as we have enough CarterOil for our gas tanks.

I agree with that.

For more than 50 years we have shown the world how to produce more food than they can possibly eat, leaving huge surpluses that can be burned to heat homes and fuel vehicles.

Almost without fail, they have rejected our ideas.

There is a price for being foolishly, willfully, ignorant. In this case food shortages.

LET THE BASTARDS STARVE TO DEATH.

As long as we have enough CarterOil for our gas tanks.

6 posted on 07/20/2012 7:55:07 AM PDT by Balding_Eagle (Liberals, at their core, are aggressive & dangerous to everyone around them,)
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To: Balding_Eagle
Almost without fail, they have rejected our ideas.

A teen friend has gone to Africa to show them how to dig wells. Another teen friend is helping in Taiwan. I tried to talk them out of these hair brained ideas and that there are people at home who need help. Sorry, but if these third world countries can't figure out how to dig a well and not poo in it after millions upon millions of years, there's no hope.

7 posted on 07/20/2012 8:06:15 AM PDT by bgill
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To: freekitty

The corn is high and doing well here. Rain is a little low, but nowhere near a draught in north Texas.


8 posted on 07/20/2012 8:14:27 AM PDT by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
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To: Kartographer

Thought you might be interested.


9 posted on 07/20/2012 8:26:25 AM PDT by goodwithagun (My gun has killed fewer people than Ted Kennedy's car.)
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To: bgill

I feel the same way. I used to be very close with my cousins until I did not give them money for a mission trip to Mexico. That was probably 15 years ago. They go there now several times a year. Their mission group is ironically based out of one of the poorest areas of Tennessee. I have chosen to work at my church’s soup kitchen and work the register at the diocese’s thrift store, and I am smiled at in condescending fashion because I “only” serve sloppy joes and hit register buttons. I don’t party like it’s 1499 in a drug war riddled third world country while my babies are at home wondering if mommy is stll alive.


10 posted on 07/20/2012 8:34:11 AM PDT by goodwithagun (My gun has killed fewer people than Ted Kennedy's car.)
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To: Perseverando

Simple. Stop burning food stocks and stop giving free food to countries that hate (or even mildly dislike) us.


11 posted on 07/20/2012 8:36:37 AM PDT by CPOSharky (zero slogan: Expect less, pay more. (apologies to Target))
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To: MrEdd
Rain is a little low, but nowhere near a draught in north Texas.

The crops are looking really bad from Northern KY north and from Ohio to west of the Mississippi river.
They don't even start looking normal until you get into northern Illinois or west to about 120 miles west of the Mississippi.

The USA is probably going to lose about 1/4 to 1/3 of its corn crop this year.
And if that area doesn't get some rain soon a large portion of the soybean crop is going to be gone also.

12 posted on 07/20/2012 8:40:37 AM PDT by Just another Joe (Warning: FReeping can be addictive and helpful to your mental health)
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To: Perseverando

I’ve got eight little coffee beans on my coffee tree - - it’s a first for the tree...


13 posted on 07/20/2012 9:33:54 AM PDT by GOPJ (Political correctness is simply George Orwell's Newspeak by a non-threatening name. FR- Bernard Marx)
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To: bray
As long as we have enough CarterOil for our gas tanks. Perhaps our Premier could stop the ethanol production to save the poor?

Good idea. Also, we can divert water from rivers and lakes if we can to get water to the crops and I've even suggested water drops from old airplanes (B-17's, DC-4's, Super Connies, etc)
14 posted on 07/20/2012 9:52:28 AM PDT by Nowhere Man (June 28th, 2012, the Day America Jumped The Shark.)
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To: GOPJ

Bravo! I seethe with jealousy.


15 posted on 07/20/2012 10:02:55 AM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com)
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To: Perseverando
In 2007-08, a rise in prices triggered food riots from Bangladesh to Haiti as the number of hungry people in the world surpassed 1bn. However, economists point out that supplies of rice and to a lesser extent wheat – key staples for many of the world’s poorest people – remain abundant, subduing prices.

Many/most/all of these places in no way have the per-capita resources to generate enough value to make transporting food to there worthwhile. Haiti can sustain around 3 million people; population there is 10 million ... do the math.

Brutal dictatorships/rebels using food as a weapon doesn't make it any better. Insofar as large volumes of food do get sent to such locations, all too often it just rots in port waiting for the right palms to get greased.

The solution? MOVE. The land can't support the population, and the governments won't support the population. A basic rule of survival is "don't be where trouble is".

In other news, South Dakota can't get enough laborers for any economic strata. Good money may be had for reasonable effort if only one moves there.

16 posted on 07/20/2012 10:13:19 AM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com)
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To: bray
Many are shutting down now. Most will be down by the end of the year.

The large wet mills that make sugar are in trouble also. To high of a price to pay for feed stock. Livestock producers are cutting herds as we speak. With the mills shutting or slowing down, they can't afford to feed the animals.

Food is going up. This was supposed to be another record year, and a lot of contracts were signed at the “projected” prices. When you gamble, you loose sometimes.

I just wonder how many farmers will go under this year.

17 posted on 07/20/2012 12:53:57 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Nowhere Man

What is sad is that just across the Mississippi in Illinois, they are diverting 500 million gallons to fill a lake. The reason? Some fancy boat race. Farmers up and down stream have had their irrigation turned off by the state, but by God we will have a boat race!


18 posted on 07/20/2012 12:57:57 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: ctdonath2
The solution? MOVE. The land can't support the population, and the governments won't support the population. A basic rule of survival is "don't be where trouble is".

The old Sam Kinison idea, get on the truck and "we'll take you to where the food is." Good idea.
19 posted on 07/20/2012 1:30:39 PM PDT by Nowhere Man (June 28th, 2012, the Day America Jumped The Shark.)
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To: redgolum
What is sad is that just across the Mississippi in Illinois, they are diverting 500 million gallons to fill a lake. The reason? Some fancy boat race. Farmers up and down stream have had their irrigation turned off by the state, but by God we will have a boat race!

That is insane! BTW, I deliver auto parts, I cross the Ohio River umpteen times a day and I drive by a marker that shows the height of the river. It looks a bit low to me.
20 posted on 07/20/2012 1:32:41 PM PDT by Nowhere Man (June 28th, 2012, the Day America Jumped The Shark.)
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To: Perseverando
Next week (actually starting tomorrow) will be very critical and maybe very devastating.

104 degrees forecast high for Des Moines on Tuesday. It just doesn't hit those temps here. No rain forecast and the soil is dry.

The corn and bean crops could take the heat if there was water in the soil to draw on, but that isn't he case

We don't lose crops in Iowa, we are the stable area. Crops are lost in other areas, but not Iowa. This may get very bad.

I am seeing trees losing all their leaves, another thing you just don't see here.

21 posted on 07/20/2012 10:38:04 PM PDT by HereInTheHeartland ("The writing is on the wall - Unions are screwed. reformist2 10:04 PM #27")
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