Required Reading
The Wall Street Journal runs this interesting story today Grain Costs Down, Groceries Not, which highlights much of what I have been banging on about on here for a while now.
Read in conjunction with this: Farm Commodities Could Soar Again pretty much sums up what I think could well happen in 2010.
Farmers the world over are responding to the current financial crisis in pretty much the same way - lower plantings and reduced inputs. In some cases that is because the economics don't stack up. In others it's down to lack of credit.
Lower global grains production in 2009 will tighten world stocks. With prices where they are currently, against a background of a continued lack of credit, plantings for the 2010 crops may well be significantly lower again.
Now that really is a recipe for very serious trouble next year, especially as we are bound to get a weather disaster or two along the way.
Meanwhile we continue to increase our fuel from food policies. Madness.
Read in conjunction with this: Farm Commodities Could Soar Again pretty much sums up what I think could well happen in 2010.
Farmers the world over are responding to the current financial crisis in pretty much the same way - lower plantings and reduced inputs. In some cases that is because the economics don't stack up. In others it's down to lack of credit.
Lower global grains production in 2009 will tighten world stocks. With prices where they are currently, against a background of a continued lack of credit, plantings for the 2010 crops may well be significantly lower again.
Now that really is a recipe for very serious trouble next year, especially as we are bound to get a weather disaster or two along the way.
Meanwhile we continue to increase our fuel from food policies. Madness.