Is This 2007-08 All Over Again?
Sep 02, 2010
Food riots, wheat shortages, corn prices booming during harvest? Remember 2007 and 2008 when the world seemed in a panic over a perceived food shortage?
This Google search may spark some of those memories.
Could it all be happening again?
Citizens in Mozambique are rioting over the rising price of food there.
Worldwide wheat shortages were to blame then. Despite an abundance of wheat here in the United States, the rest of the world is lacking. Russia has halted exports and other Eastern European countries suffer from the same drought. On Thursday, the Russian Prime Minister Vladimir Putin announced that ban will remain until at least the middle of 2011.
Bloomberg is reporting overnight that the news from Russia is pushing wheat higher. The United Nations’ Food and Agriculture Organization has called a special meeting to address the worldwide grain shortage.
Don Roose, a market analyst, says in this Reuters article that things may not get out of hand as they did in 2008. The worldwide economy is far too weak. Is that good news or bad news?
Dare I even mention what fertilizer prices did during that time?