Saturday 28 July 2012
Economists have no idea about farming
Are warning that high grain prices could lead to a global food crisis similar to that experienced in 2010.
Wheat, corn and soybean prices have risen around 30 per cent in the past month following dry conditions in the United States and Russia.
Commonwealth Bank commodity strategist Luke Matthews says the high prices may lead to stockpiling of food supplies.
"Compared with the decade average, we currently have corn, which is up nearly 110 per cent, and beans, which are up nearly 100 per cent," he said.
"We are certainly seeing food price inflation potentially come back on the radar over the next couple of months."
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