Friday, August 6, 2010

End of cheap food

-- The world may face another food crisis if the surge in wheat sparked by Russia’s export ban drives the prices of other staples higher, according to an executive from Indonesia, Asia’s largest buyer of the grain.
“There will be a domino reaction and we expect corn demand will rise, pushing prices higher, and feed industries will buy more corn and soybeans,” Franciscus Welirang, chairman of the Flour Mills Association in Indonesia, said in an interview today. “It’s the end of cheap wheat.” --
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Comment: Imagine when all those countries that have accumulated trillions of dollars in international reserves begin to buy food for their people.

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