A Big 12 Word and Rising Food Prices
Jun 15, 2010
Whew! Any other Iowa State fans out there breathing a sigh of relief this morning
? K-State, can I get an AMEN? Mizzou and KU, you too. And Baylor, I’m not sure if you or my beloved Cyclones were in a more precarious position. Thank you to our brother ag school at Texas A&M for holding strong and keeping the Big 12 (or are we now the Big 10?) together.
Rising Food Prices The Food and Agriculture Organization (FAO) of the United Nations sees higher food prices over the next decade as diets improve and population increases. When adjusted for inflation, wheat prices will be 15% to 40% higher compared to 1997-2006 and vegetable oils will be an average of 40% higher. While growing demand will help drive prices up, FAO anticipates production will keep pace with demand.
Japanese Foot-and-Mouth Cuts Corn ExportsA recent outbreak of foot-and-mouth disease in Japan’s cattle herd is quickly gaining some unwanted momentum. Corn imports to Japan are dropping with the announcement of foot-and-mouth now present in that country. The country’s new prime minister has called it a national emergency and it’s being felt all the way to the Midwest. According to Reuters, it could cut U.S. corn exports to Japan by 2.1% this year.
Soybeans Will Not Rally?
Agrimoney.com, a Web site for the investment community, says oilseed-to-usage ratios are not favorable for soybeans. By the end of year, the report says, that ratio is expected to rise to 27%, compared to the 19.4% that was seen at the end of the 2008-09 marketing year. Prices for soybeans from July to September look to average $8.70/bu., the report says.
Argentine Grain Handlers Strike DelayedThe anticipated grain handlers strike in Argentina appears to be on delay. No deal has been struck yet between labor and management, but they have stayed the strike and negotiations continue.