Global food prices are at their highest point since July 2008, the year of widespread food riots in the developing world, and are expected to rise further over the next two years as supplies tighten, the United Nations food agency said yesterday.
Economists worry that bad weather may cause corn stocks in the United States, the world’s largest exporter of the crop, to halve by the end of the year to about 21 million tonnes.
U.S. wheat prices were motivated by a Russian drought while soy bean prices are up because supply has been pressured by an increased demand from China. Corn prices have reached $6 per bushel on the back of increased demand from ethanol producers as the EPA increased ethanol ratio standards for new vehicles from 10% to 15%.
Great idea burn food for fuel when increasing prices mean more starve. Of course the Greens are against it now, it never was their idea, was it?