Food Price Fears May Be Near…..U.S. Warns On Crop Short Falls

Posted By on November 10, 2010

A major point in the long weather cycle occurs in 2011…….Demand is soaring and crop yields are shrinking. This alone will send agricultural prices higher.  Now add aggressive currency devaluation into the mix and we can better understand the direction of capital flows.  The phrase budget pain will soon redefine the grocery checkout experience.

From the FT: 

(FT) — The spectre of inflation loomed over agricultural markets after the U.S. slashed key crop forecasts and warned of shortfalls in grains.

The agriculture department on Tuesday cut estimates of U.S. corn yields for a third successive month, forecast record soyabean exports to China and warned of the slimmest cotton stocks since 1925.

“The combined production shortfalls and dramatic potential stock drawdowns mean a much tighter supply picture than just a few months ago,” the agency said in a separate grains report.


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