NightBlogger

Photo courtesy of StormyDog

As farmers confront mounting costs and riots erupt from Haiti to Egypt over food, farmers pay the price for Wall Street’s speculation in grain markets. “It’s the best of times for somebody speculating on grain prices, but it’s not the best of times for farmers. The demand for futures exceeds the demand for cash grains.” Commodity investors control more U.S. crops than ever before, competing with governments and consumers for dwindling food supplies. Demand is rising with population and income gains in Asia, while record energy costs boost biofuels consumption, sending grain inventories to the lowest levels in two decades.
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Photo azrainman
The mass diversion of the North American grain harvest into ethanol plants for fuel is reaching its political and moral limits. “The world food situation is very serious: we have seen riots in Egypt, Cameroon, Haiti and Burkina Faso,” said Mr Diouf. “There is a risk that this unrest will spread in countries where 50pc to 60pc of income goes to food.”

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