U.S. Commodities: Grains Rise as Food Protests in Africa Mount

[Joanne98]

Source: Bloomberg

Wheat rose, capping the longest rally since November 2009, while corn and soybeans climbed as countries increase purchases from the U.S., the world’s biggest exporter, to cut food inflation and quell civil unrest.

Food-exporting countries are “strongly advised” not to restrict shipments to prevent “more uncertainty and disruption” in world markets, the United Nations said. Governments in Egypt, Algeria, Morocco and Yemen have faced protests amid rising costs and high unemployment, and a revolt toppled Tunisia’s leader.

“Sovereign nations are beginning to stockpile food to prevent unrest, and that will help to boost demand for U.S. grains,” said Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana. “You artificially stimulate much higher demand when nations start to increase stockpiles.”

In other markets, hog futures surged to the highest in more than 14 years as prospects improved for U.S. pork exports to Asia. Sugar jumped more than 4 percent. The UBS Bloomberg Constant Maturity Commodity Index advanced 1.7 percent, the most this month, to 1,661.31.

Wheat futures for March delivery rose 18.25 cents, or 2.2 percent, to $8.565 a bushel on the Chicago Board of Trade, capping a seven-day advance of 11 percent. Earlier, the price reached $8.6125, the highest for a most-active contract since Aug. 6. The grain has jumped 73 percent in the past 12 months.



Read more: http://www.bloomberg.com/news/2011-01-26/u-s-commodities-grains-rise-as-food-protests-in-africa-mount.html

[SpiralHawk]

1. This is going to be a central story throughout 2011

Buy your open-pollinated seed today.

"Dilly dally not." - Flub-a-dub

[NickB79]

5. And learn how to seed-save as well

Because even if you get your open-pollinated/non-hybrid seeds this year, there might not be any next year.

[Catherina]

2. Some people belong in jail right now

“Sovereign nations are beginning to stockpile food to prevent unrest, and that will help to boost demand for U.S. grains,”

WTF.


Rec'd

[madrchsod]

3. china bought all of the us surplus at the end of 2009 for fuel.

2010s harvest was off anywhere from 5-20% depending on the area in the corn belt states.

i`m not sure if anyone has a clue about the next growing season across the grain belt

[No Elephants]

4. And RWers could not understand why Gore got a PEACE prize for his climate change work. DUH!

Wonder if it's beginning to dawn on them yet.