Saturday, December 06, 2008

Stratfor: Fall in Food Prices Likely Temporary

Stratfor reports that the current drop in food prices is likely to be temporary, because falling prices and the credit crunch will reduce supply next growing cycle.

The article confirms something we've been discussing here at length - the trends which originally brought about the supply/demand imbalance in the grains markets are still firmly in place, and that these supply constraints will remain until there is a large structural change in supply or productivity.

1 comment:

Peehu Sharma said...

Crude Oil February and Brent Oil March series are slightly down at $ 52 and $ 55 a barrel, respectively.
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