UN Warned Of Major New Food Crisis At Emergency Meeting In Rome! Global Food Risk From China-Russia Pincer. Brazil Crops Shrivel As Amazon Dries Up To Lowest In 47 Years! Australian Prime Wheat In Demand, Supply Outlook Tight!

• The global food crisis is not going away. It is still building and can at any time become global famine. Signs are already there that famine is starting in third world countries! Illuminist banksters are about to drive commodity prices into the stratosphere as part of their depopulation plan via famine!
    
  UN warned of major new food crisis at emergency meeting in Rome
  Environmental disasters and speculative investors are to blame for volatile food commodities markets, says UN’s special adviser. The world may be on the brink of a major new food crisis caused by environmental disasters and rampant market speculators, the UN was warned today at an emergency meeting on food price inflation.
   
  The UN’s Food and Agriculture Organisation (FAO) meeting in Rome today was called last month after a heatwave and wildfires in Russia led to a draconian wheat export ban and food riots broke out in Mozambique, killing 13 people. But UN experts heard that pension and hedge funds, sovereign wealth funds and large banks who speculate on commodity markets may also be responsible for inflation in food prices being seen across all continents.
   
  In a new paper released this week, Olivier De Schutter, the UN’s special rapporteur on food, says that the increases in price and the volatility of food commodities can only be explained by the emergence of a “speculative bubble” which he traces back to the early noughties.
   
  “[Beginning in ]2001, food commodities derivatives markets, and commodities indexes began to see an influx of non-traditional investors,” De Schutter writes. “The reason for this was because other markets dried up one by one: the dotcoms vanished at the end of 2001, the stock market soon after, and the US housing market in August 2007. As each bubble burst, these large institutional investors moved into other markets, each traditionally considered more stable than the last. Strong similarities can be seen between the price behaviour of food commodities and other refuge values, such as gold.”
   
  Corn, Soybeans Hit Two Year High While Cotton Jumps To 15-Year Peak
  Oil jumped 2% on Monday and sharp gains in cotton, corn and soybeans also helped boost a commodities index to eight-month highs, while gold extended record highs as investors waited to see if the Federal Reserve would signal any plans to stimulate the U.S. economy.
   
  The Reuters-Jefferies CRB, an index that tracks commodity prices across 19 mostly U.S.-traded futures markets, was up almost half a percent by 12:00 p.m. EDT after soaring to its highest level since Jan. 20. The U.S. dollar slipped on worries that the Federal Reserve may suggest the need to inject more stimulus into the struggling economy when it announces its latest policy decision on Tuesday. A weak dollar invariably boosts prices of commodities denominated in the greenback, making them more attractive to users of currencies such as the euro and yen.
   
  Australian prime wheat in demand, supply outlook tight
  Quality problems caused by a wetter-than-usual spring growing season in eastern Australia may push up global prices for high-quality wheat further as the country heads for its best harvest of the grain in five years. World supplies of top quality, high protein wheat have already shrunk because of production setbacks in Canada, the top exporter of this type of grain, quality issues with the US northern dark spring wheat crop, and rains in Germany.
   
  Australia’s own weather difficulties could add to the tightening supply outlook as eastern Australia, where most of the country’s high protein wheat is grown, expects a wet spring, mostly due to the La Nina weather event.
   
  Brazil Crops Shrivel as Amazon Dries Up to Lowest in 47 Years
  Drought in Brazil, the world’s biggest producer of coffee, sugar and oranges, is harming crops and drying the Amazon River to its lowest in 47 years. The Amazon’s 18-meter (59-feet) level on Sept. 20 was the least since 1963, disrupting transportation of food, fuel and medicines in northern Brazil, the National Water Agency said in an e-mailed statement. Growers in Brazil’s Southeast expect the drought will pare output of the nation’s key commodities.
   
  Sugar rose to the highest price in seven months in New York today and has jumped 29 percent this month because of concern the South American drought threatens global supplies. Orange juice gained 15 percent this month and coffee soared 33 percent this year. The dry weather will persist at least until mid- October, said Willians Bini, a meteorologist at Sao Paulo-based weather forecaster Somar Meteorologia.
   
  Global food risk from China-Russia pincer
  World food supplies are caught in a pincer as China becomes a net importer of corn for the first time in modern history and Russia’s drought inflicts even more damage than expected, raising the risk of a global grain shock in 2011.
    
  The Moscow bank Uralsib said half of Russia’s potato crop has been lost and the country’s wheat crisis will drag on for a second year, forcing the Kremlin to draw on world stocks. Wheat prices have risen 70pc since June to $7.30 a bushel as the worst heatwave for half a century ravages crops across the Black Sea region, an area that supplies a quarter of global wheat exports. This has caused knock-on effects through the whole nexus of grains and other foods.
    
  “We had hoped things would calm down by September, but they haven’t: more commodities are joining in,” said Abdolreza Abbassanian, grain chief at the UN’s Food and Agriculture Organisation. The UN fears a repeat of the price spike in 2008 that set off global food riots. Wheat prices are still far below the $13 peak they reached then, and the global stocks to use ratio is still “safe” at 22pc. However, the outlook is darkening.

end

Advertisement