Fears of new food crisis as prices soar

[jflorida]

Re: Fears of new food crisis as prices soar - Update

Re: Fears of new food crisis as prices soar - Update

Record harvest expected despite drought [http://www.upi.com/Business_News/2011/03/10/Record-harvest-expected-despite-drought/UPI-12041299815642/]

China expects a record grain harvest this year despite a drought that has hit its wheat-growing regions, the agriculture minister said.

Han said current wheat harvest benefited from recent rain and from massive drought-relief efforts, China Daily reported.




Update : This record harvest isn't confirmed still as of yet and there are projections China will increase imports:

June 13 2011 - China might double wheat imports to 3 million tons this year, said Li Qiang of market researcher Shanghai JC Intelligence . The crop might slip to 96.5 million tons because of drought, below the 115.5 million tons predicted by the USDA. About 80 percent of China’s wheat crop was irrigated, which would alleviate damage, said economist Dan Manternach. In areas without irrigation, lack of rain in the next three weeks might again threaten yields. [ http://www.iol.co.za/business/international/droughts-wilt-wheat-crops-worldwide-1.1082464 ]

 

[jflorida]

Re: Fears of new food crisis as prices soar




As series of droughts spanning the northern hemisphere continues to place positive pressure on world food prices. While there has been some splotchy relief in the form of rains the majority of the damage has been done and the hoped for relief in low supplies from last year's price spike will probably not occur.

Add to the problems recent excessive rains in the US and Canada may delay planting of this years crop, if not totally prohibit its planting in some areas.

Ref -

Wheat Rallying 20% as Parched Fields Wilt From China to Kansas

Estimate for EU wheat slashed even as rains arrive

Wheat May Climb as Curbed Acreage in Canada Adds to Global Supply Concern

 

[jflorida]

Re: Fears of new food crisis as prices soar

To make matters worse:

Analysis: U.S. ethanol plants toy with wheat, committed to corn

Given the tight carry-out in corn this year, and the fact that wheat does contain fermentable starch, a number of plants are evaluating the technical and economic feasibility," said Neill McKinstray, general manager of the ethanol division for The Andersons, Inc, which operates plants with about 300 million gallons of total collective capacity. [ http://www.reuters.com/article/2011/06/15/us-ethanol-wheat-idUSTRE75E0MQ20110615 ]