Due to dry conditions in the autumn sowing period, crop yields are not what they need to be for food prices to remain stable -- let alone fall:
Food inflation faces more upward pressure after the US government on Friday revealed that American farmers had barely increased their sowing of cereal crops in spite of record prices.
The US agriculture department also warned of persistently low inventories, with wheat stocks at the lowest since 1947, and a massive 20 per cent reduction in corn stores.
Analysts believe a further wave of food inflation is on the way after the price surges of last summer.
Although it's not mentioned here, these basic crops are also needed to feed livestock, and go into countless other products. So as these crops go, so likely goes all food purchased in the United States.
At least we can feel good about devoting all that farmland to ethanol production, can't we?
Not so much.
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