Thought Exchange

Tagged: DBC RSS

• Pete 2:23 PM on August 3, 2010 Permalink
  Tags: China ( 17 ), DBC   

  Wheat Soars; Rogers Sees ‘Much Higher’ Food Prices 

  CNBC.com Reporting:

  The July rise in wheat prices, the fastest in 51 years, indicates that shortages in agriculture are coming, Jim Rogers, chairman of Rogers Holdings, told CNBC.com Tuesday.

  Wheat prices in Europe hit their highest level in two years, rising almost 50 percent since late June as Russia’s wheat crop was affected by drought.

  “That’s the straw that broke the camel’s back,” Rogers, who has been warning about shortages coming in the agriculture sector for a while, said in a telephone interview.

  I find it interesting there wasn’t too much interest in the China/Corn story from last week

  China Enters ‘New Era’ of Corn Buying, Council Says

  China may import as much as 15 million tons of corn in 2015 as demand outstrips local supply and the country enters a “new era” of buying from overseas, the U.S. Grains Council said, citing Shanghai JC Intelligence Co.

  Imports may total 1.7 million tons this year and 5.8 million tons next year, the council said, citing Shanghai JC Chairman Hanver Li. Even with normal weather, the second-largest corn consumer won’t be able produce enough to meet demand as incomes rise, the council said on its website, citing Li.

  Teresa Lo, and ArlingtonJB are discussing. Toggle Comments

   

  • ArlingtonJB 4:09 PM on August 3, 2010 Permalink | Log in to Reply

    The WSJ Blogs talk about Rogers view on wheat and add this from ADM

    …John Rice, the [ADM]’s executive vice president for commercial and production, noted the conflictiing signals out of Russia about whether the severe drought there will eliminate all its export capacity, or whether it will still be able to help feed the world despite the crop losses.

    Mr. Rice called the Russian situation a “moving target,” as Ian Berry of Dow Jones Newswires reported. He also said the next thing to watch is what happens with the weather in Australia, another major wheat exporter, which has been battling locusts. “That’s going to be the next key crop, and then I think we’re just going to have to see how the harvest comes,” he said.

    Russian fires and Australian locusts. It’s getting biblical.

    • Teresa Lo 9:31 PM on August 3, 2010 Permalink | Log in to Reply

      LOL. It’s nothing compared to the 5 Horrifying Apocalyptic Scenarios (That Have Already Happened).

  • Teresa Lo 9:29 PM on August 3, 2010 Permalink | Log in to Reply

    They’ll just have to eat less. Thank God.