FoodJun 28th 2007
From The Economist print edition
Led by soaring grain prices, The Economist's dollar food-index has risen to its highest level for more than a decade. Wheat prices are at an 11-year high, and stocks are forecast to fall to a 30-year low by June 2008, despite a recovery in Australia's harvest. Tempted by high prices, American farmers have planted the biggest maize crop since 1944, though a quarter of it will be used to make fuel ethanol. As a result, the soyabean harvest will be smaller and American stocks are forecast to fall by nearly a half in 2007-08. The price of robusta beans, used to make instant coffee, has hit a nine-year high, thanks to a shortage in Vietnam. And drought in Africa has pushed cocoa prices to a four-year high. |