World grain prices to stay strong

Reuters / World grain prices should remain “very firm” over the near term as demand from Asia exceeds forecasts and dry weather cuts into supply, the senior economist of the UN’s Food and Agriculture Organization (FAO) said March 26. South American corn and soy yields took a beating from drought this season, while China’s rapidly

Spectre of inflation has large investors eyeing farmland

london / reuters / The hunt is on. Fearful that debt-laden governments will allow inflation to rise and erode the real value of money, many institutional investors are eyeing farmland as an inflation hedge. But ownership brings responsibilities, costs and risks that need close management. The inflation-adjusted value of American farmland peaked in 1980, according


Lower Grain Price And Fuel Prices Needed

Sharp declines in prices for grains and gasoline will be the most effective stimulus for renewed growth, by easing the squeeze on household finances across North America and Western Europe, but only if price cuts can be sustained. Relative declines in prices for food, clothing and fuel have been one of the big drivers of

Are Higher Commodity Prices The “New Normal?”

Higher commodity prices might be the rule rather than the exception in the coming years, a Purdue University agricultural economist says. While prices regularly rise and fall, they have trended upward in a way that suggests they’ve reached a plateau, said Mike Boehlje. He attributed much of the price movement to bullish export markets, weather-shortened


China To Stabilize Pork Prices

China will do more to boost pork supply and stabilize prices as part of efforts to check inflation, the state council said July 28. Pork prices fell last week, for the first time since April, data from the Commerce Ministry showed. The price of pork, a staple food, is particularly sensitive in China since it

China’s Costly Pigs Irk Consumers, Help Producers

The long, red-brick structures in this village on the outskirts of Beijing contain some of this year’s fastest-appreciating Chinese assets: pigs. Their owner Ma Shihong is in no rush to sell. Her fleshy, pale-downed porkers are worth 70 per cent more than last year on the market, with live pig prices, and their girth, growing


Global Food Inflation To Return After Brief Respite

Red-hot food inflation that has vexed policy-makers around the world seemed to take a breather last month, when corn and wheat prices tumbled on reports that crop shortages were easing. The sell-off was also driven by global economic worries that prompted funds to exit grains in droves. But prices are climbing again, and have already

Record-High Food Prices? Or Just Better Than Record Lows?

Reporters and politicians are making frequent references to high food prices – some going so far as to suggest prices are nearing record levels. But for the farmers and peasants who produce the world’s food, prices are nowhere near record highs. In fact, what is currently happening to corn, beans, rice, or wheat prices would


FAO Warns On Oil As World Food Prices Hit Record

Global food prices hit a record high in February, the United Nations said March 3, warning that fresh oil price spikes and stockpiling by importers keen to head off popular unrest would hit already volatile cereal markets. Rising food prices are a growing global concern, partly fuelling the protests which toppled the rulers of Tunisia

Food Inflation Controls May Backfire

Government efforts to control prices, now that food inflation has risen to the top of political agendas across the globe, may hamper a needed increase in supplies, a Cargill director warned Feb. 15. Paul Conway, senior vice-president and board member with the U.S. agribusiness and trading giant, said it was clear that political instability in