Friday, April 04, 2008

Global food crisis looms as grain prices soar

RICE and maize hit record prices yesterday on speculation that global demand for cereals would not be met as governments in producer countries curb exports to prevent protests.

Rice, the staple food for about 3-billion people — nearly half the world’s population — rose 2,4% in Chicago yesterday after doubling in the past year. Soya beans advanced for the third day and wheat also rose.

Harvests have been reduced by drought in countries including Canada and Australia, and by a US freeze followed by excessive rain last year. China, India and Vietnam have cut rice exports and Indonesia has reduced import tariffs to protect food supplies and cool inflation.

Rest of this Business Day article here.

NVDL: And guys like Mobius are dreaming that emerging growth market is going to carry on singing over the long term. It's not going to happen. There has been a fundamental shift in the system, and we are now heading down the other side of the bell curve (towards contraction).

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