Saturday, September 18, 2010

Disasters push price of food to new highs

Wheat futures for December delivery on the Chicago Board of Trade
are up 36 per cent from March. Adriano Machado / Bloomberg





The price of food is set to soar to levels not seen since 2007 as natural disasters and increased demand from China hit supplies and crops around the world, a study by Morgan Stanley says.

World food prices rose sharply in 2007 as changing diets among the growing middle class in Asia combined with drought and higher fertiliser prices to hit world food stocks. Between 2007 and 2008, average prices for wheat rose by 136 per cent, corn by 125 per cent and soya beans by 107 per cent, according to Bloomberg.

Today, the prices of wheat, soya beans and corn are rising almost as sharply as they did three years ago as bad weather and growing demand again come to the fore, Morgan Stanley said.



http://www.thenational.ae/apps/pbcs.dll/article?AID=/20100918/BUSINESS/709189924/1005/rss

Society

United States

Top Stories