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Authoritarian governments start stockpiling food to fight public anger
Commodities traders have warned they are seeing the first signs of panic buying from states concerned about the political implications of rising prices for staple crops.
However, the tactic risks simply further pushing up prices, analysts have warned, pushing a spiral of food inflation.
Governments in Asia, the Middle East and North Africa have recently made large food purchases on the open market in the wake of unrest in Tunisia which deposed president Zine al-Abidine Ben Ali. Read more…
Cheap food may be a thing of the past
U.S. grain prices should stay unrelentingly high this year, according to a Reuters poll, the latest sign that the era of cheap food has come to an end.
U.S. corn, soybeans and wheat prices — which surged by as much has 50 percent last year and hit their highest levels since mid-2008 — will dip by at most 5 percent by the end of 2011, according to the poll of 16 analysts.
The forecasts suggest no quick relief for nations bedeviled by record high food costs that have stoked civil unrest. It means any extreme weather event in a grains-producing part of the world could send prices soaring further.
The expectations may also strengthen importers’ resolve to build bigger inventories after a year in which stocks of corn and soybeans in the United States — the world’s top exporter — dwindled to their lowest level in decades.
Story: Global food chain stretched to the limit Read more…
Planned Food Shortage In The US
“Most people have the idea that food in our grocery stores just magically appears; maybe it just pops up out of the floors or drops down from secret store rooms in the ceilings.”
Buy local? Ok! I will do that! Wait…..this says product of China, product of Brazil, product of Mexico, product of Egypt, Guatemala, Argentina ………where is the stuff produced in the US? How am I supposed to buy local to support my local economy when there is nothing here that was produced locally or even in the United States? And this stuff over here? It just says “distributed by” a company in the US and I have no idea where the heck it came from.
In what I see as a sick joke mouthed by sick individuals in our government, the call has gone out to “buy local! Know your farmer!” I know the farmers in this area but they are being regulated and pressured out of business with the passage of the fake food safety bill in the senate. Read more…
Quantitative Easing Causing Food Prices to Skyrocket
As I’ve previously noted, interest rates have risen both times after the Fed implemented quantitative easing.
Graham Summers points out that food prices have also skyrocketed both times:
In case you’ve missed it, food riots are spreading throughout the developing world Already Tunisia, Algeria, Oman, and even Laos are experiencing riots and protests due to soaring food prices.
As Abdolreza Abbassian, chief economist at the UN’s Food and Agriculture Organization (FAO), put it, “We are entering a danger territory.”
Indeed, these situations left people literally starving… AND dead from the riots.
And why is this happening?
A perfect storm of increased demand, bad harvests from key exporters (Argentina, Russia, Australia and Canada, but most of all, the Fed’s money pumping. If you don’t believe me, have a look at the below chart: Read more…
Spike in world food prices: It’s more than bad weather
A global index for food prices, as measured by the UN, reached a record high last month. This on the heels of a food crisis in 2007-08. The weather isn’t the only culprit — or solution.
Of all the world headlines that Sen. Richard Lugar could have highlighted this week – the visit of China’s president in Washington, for instance, or the revolt in Arab Tunisia – the most burning issue for him was … alfalfa.
The plant, used for animal feed, was the surprising topic of the senator’s opening remarks at a Monitor breakfast with reporters Jan. 18. Alfalfa holds a special interest for this active Indiana farmer who is also the ranking Republican on the Senate Foreign Relations Committee. Alfalfa, he notes, is one example of why world food prices have risen so sharply – the second such rise in just over two years.
Last month the global food price index reached a record high, according to the Food and Agricultural Organization, a United Nations body. It surpassed the levels of the last food crisis in 2007-2008, when rising prices caused riots in more than 30 countries.
The human misery from unaffordable – or unavailable – food isn’t as widespread this time, because the price of rice – a staple for more than 3 billion people – is relatively stable. Also, Africa and Asia have seen some good harvests, helping feed local populations. Read more…
Why Are Commodity Prices Rising? Let Me Count the Ways
Our overview of 2011 ‘What Ifs’ concentrated on the concepts of bifurcation and biflation. Those themes are already playing out just a couple of weeks into the New Year. Inflation in all types of commodities has ramped up even further, leaving countries like China, India, Brazil, Thailand and South Korea to deal with more than their fair share of these inflationary forces. Meanwhile, easy monetary policy in the U.S. and Europe just adds fuel to the inflation fire.
The United Nations food agency (FAO) kicked off 2011 by announcing that December of 2010 saw food prices eclipse the record levels hit during the 2008 food crisis, which triggered riots in Egypt, Cameroon, and Haiti at the time. The current spike in food prices has already caused violent food riots in Algeria, Tunisia, Morocco, Yemen, and Jordan.
Food Inflation by the Numbers
Food inflation has already hit double digits in China, India and Brazil. It’s not hard to see why when you look at how some of the major soft commodities have performed over the last 12 months:
- Corn: + 69%
- Wheat: + 47%
- Soy Beans: + 44%
- Sugar: + 15%
- Coffee: + 65%
- Cotton: + 105%
(Trailing 12-month price moves as of January 12, 2011)
While these price spikes are causing food and clothing prices to rise, those effects will undoubtedly be exacerbated by the simultaneous rise in energy and raw materials we have seen:
- Oil: + 15% over 12 months and + 30% since the August, 2010 low
- Copper: + 30%
Overall, you can see the rise in commodity prices in the CRB Index, up about 30% since August of 2010, but well off the parabolic peak of 2008: Read more…
World is ‘one poor harvest’ from chaos, new book warns
Like many environmentalists, Lester Brown is worried. In his new book “World on the Edge,” released this week, Brown says mankind has pushed civilization to the brink of collapse by bleeding aquifers dry and overplowing land to feed an ever-growing population, while overloading the atmosphere with carbon dioxide.
If we continue to sap Earth’s natural resources, “civilizational collapse is no longer a matter of whether but when,” Brown, the founder of Worldwatch and the Earth Policy Institute, which both seek to create a sustainable society, told AFP.
What distinguishes “World on the Edge” from his dozens of other books is “the sense of urgency,” Brown told AFP. “Things could start unraveling at any time now and it’s likely to start on the food front.
“We’ve got to get our act together quickly. We don’t have generations or even decades — we’re one poor harvest away from chaos,” he said.
“We have been talking for decades about saving the planet, but the question now is, can we save civilization?”
In “World on the Edge”, Brown points to warning signs and lays out arguments for why he believes the cause of the chaos will be the unsustainable way that mankind is going about producing more and more food. Read more…
South African Corn Rises as Dry Weather Stresses Argentina Crop
Corn in South Africa advanced as dry weather continues to stress crops in Argentina, the world’s largest shipper of the grain after the U.S., raising concerns that global stockpiles may be depleted.
White corn for March delivery, the most active contract on the South African Futures Exchange, gained 28 rand, or 2.2 percent, to close trade at 1,328 rand ($194) a metric ton. Meal made from the grain is the country’s staple food.
Argentina will continue to have a rainfall deficit in the seven days from yesterday, Telvent DTN Inc. said in a forecast. The lack of rain, combined with above-normal temperatures, will stress pollinating corn and developing soybeans, it said.
Yellow corn for March delivery advanced 36 rand, or 2.6 percent, to 1,442 rand a ton. The grain is used mainly as animal feed in South Africa.
Wheat for March delivery fell 1 rand to 2,888 rand a ton.
Gains or losses for the most active contracts of three additional crops today were as follows. All prices are in rand and the crops are sold per ton:
Today’s Price Previous Close % Change Sunflowers 4,219 4,186 +0.8 Soybeans 3,320 3,270 +1.5 Sorghum 1,500 1,500 0.0
Devastating fungus ravages common banana crops
WASHINGTON — A fungus scientists have dubbed “the HIV of banana plantations” has ravaged huge crops of the cavendish variety — the only kind of banana available in American grocery stores.
The spread of the soil-borne fungus Tropical Race IV has ruined crops across China, the Philippines and Australia, and is expected to spread next to Central America, where American distributors get the fruit.
Two teams of scientists are trying to genetically engineer cavendish bananas that are resistant to the fungus.
There are thousands of kinds of bananas worldwide, but the Cavendish, discovered in a Chinese household garden by a nineteenth-century British Explorer, represents 99 percent of the international market, according to a New Yorker report.
Most other exported varieties won’t withstand the international trip or ripen too quickly.
The New Yorker reports in 2008 Americans ate 7.6 billion pounds of Cavendish bananas, which at 60 cents a pound are also very cheap.
http://www.popsci.com/scitech/article/2008-06/can-fruit-be-saved
Get your Non Hybird Seeds While You Can
S. 510 was introduced in the 111th Congress, which has adjourned.
It has not yet been reintroduced…yet
S 510, the Food Safety Modernization Act of 2010, may be the most dangerous bill in the history of the US. It is to our food what the bailout was to our economy, only we can live without money.
“If accepted [S 510] would preclude the public’s right to grow, own, trade, transport, share, feed and eat each and every food that nature makes. It will become the most offensive authority against the cultivation, trade and consumption of food and agricultural products of one’s choice. It will be unconstitutional and contrary to natural law or, if you like, the will of God.” ~Dr. Shiv Chopra, Canada Health whistleblower
It is similar to what India faced with imposition of the salt tax during British rule, only S 510 extends control over all food in the US, violating the fundamental human right to food.
Monsanto says it has no interest in the bill and would not benefit from it, but Monsanto’s Michael Taylor who gave us rBGH and unregulated genetically modified (GM) organisms, appears to have designed it and is waiting as an appointed Food Czar to the FDA (a position unapproved by Congress) to administer the agency it would create — without judicial review — if it passes. S 510 would give Monsanto unlimited power over all US seed, food supplements, food and farming.
History
In the 1990s, Bill Clinton introduced HACCP (Hazardous Analysis Critical Control Points) purportedly to Read more…
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