Saturday, December 3, 2011

Bloomberg Interviews FAO Economist about Global Food Prices

Abdolreza Abbassian, a senior economist at the United Nations' Food and Agriculture Organization, talks about global food prices, which declined for a fifth month in November.

In this discussion, it is admitted that prices may fall yet further.
Global food costs tracked by the United Nations have declined 9.1 percent from a record in February, helping to contain inflation as economic growth slows. Corn and soybeans are also tumbling after farmers responded to record-high prices by planting more crops. Combined output of wheat, corn and soy will jump 3.4 percent to a record 1.8 billion tons this season, 32 percent more than a decade ago, the USDA said last month.----Bloomberg
Following are the 3-month declines of wheat, rice, and corn prices:
  • Wheat future (CBT) down 23.15%
  • Rough rice (CBOT) down 19.59%
  • Corn down 19.97%

Don't forget, everyone but moi was predicting dire food shortages a year ago!