Sunday, October 10, 2010

US high prices lead Food Crisis

Soaring prices in the US are leading to a new food crisis with Agricultural commodities prices gaining momentum.

Last week, the US government slashed grain production estimates after adverse weather conditions.

Crops worldwide have been damaged recently been floods and wild weather.

Traders on commodities markets have described the fluctuations in price for grains as among the worst since the 2007-08 food crisis, when inventories were well down.

Last week there were price movements of up to 12.5%.

The markets most affected were corn, wheat, soyabean, sugar, barley and oats.

The US Department of Agriculture has also warned that stocks of corn and barley, the grains that feed the meat industry, are at a 14 year low.

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