World food prices probably will stay at historically high levels this year on a lack of stockpiles after falling in August on lower costs for cooking oils and dairy products, the United Nations said.Food inflation combined with higher energy prices are a problem, especially for poorer countries, but even here families are spending more of their income on basic necessities.
An index of 55 food commodities fell to 231.1 in August from 231.9 in July, the UN’s Rome-based Food and Agriculture Organization said in a report on its website today. The gauge has slipped 2.8 percent from a record 237.7 in February, while remaining higher than at any time in previous years.
Due to Congressional mandate, corn is used for food and energy both. This year?
Global grain production is forecast to rise 3 percent to 2.307 billion metric tons in 2011-12, the FAO said in a separate statement, down 5.8 million tons from a July outlook. Corn-crop prospects in the U.S. deteriorated because of hot weather in July and August.Time to end corn's mandate as fuel in the U.S., for a myriad of reasons. It's a water hog and an energy waste--and we can't afford it.
“Low inventory for the second season means we’ll be looking with anxiety to what will happen to 2012 production already now,” Abbassian said. “Everything now depends on corn. It has been setting the tone for the whole season.”
Corn futures climbed 15 percent in Chicago last month after rising 7.8 percent in July, while wheat rose 11 percent in August and 17 percent the previous month. Corn has gained 19 percent this year, compared with a 5.7 percent drop for wheat.
P.S. Meanwhile, another expensive greenie boondoggle and bust to the tune of half a billion taxpayers dollars down his crony capitalist rathole has become a scandal for the Obama administration. Solyndra raided by FBI.