USDA Forecast – Record Prices in 2011
Last week the USDA held their annual forum to discuss the outlook for the agriculture sector in 2011. Joseph Glauber, the USDA’s Chief Economist, forecast the grain markets will be ‘stressed’ this year and tightness will extend into 2012. Corn and soybean markets face the largest challenges due to demand and supply issues and the low levels of inventories.
Glauber forecast nominal record prices for corn, wheat and soybeans in 2011, and predicted that the tightness and high prices in the markets would "not be entirely mitigated over the course of one or even two growing seasons." Ending stocks for corn is forecast to be the smallest since 1996 and soybeans will amount to a few week's supply suggesting very little cushion for unexpected shortfalls.
Comment: Food price inflation will trigger more rebellion across the globe and sooner or later it will hit also the developed countries and provoke social unrest.
No comments:
Post a Comment