Commodities

The Fight on Food Inflation

Sam Sherraden — Mon, 14 Apr 2008 21:54:00 -0400

Rioting has broken out in Egypt, Senegal, Ivory Coast, Cameroon, and Ethiopia and 33 more countries around the world may face instability due to rising food prices. During IMF/World Bank meetings last week, leaders cited the U.S. demand for bio fuels as a major reason for high grain prices. Throughout the weeklong meetings, World Bank President Robert Zoellick repeated the need for more food assistance to poor countries. To date, the United Nations has only received half of the $500 million it said it needed to sustain assistance through the World Food Program.

Snapshot asks, will cutting the U.S. demand for bio fuels sufficiently curb inflation in food prices?

World Bank - Rising food prices: policy options and World Bank Response
Wall Street Journal - Food Inflation, Riots Spark Worries for World Leaders
European Bank for Reconstruction and Development - Fighting Food Inflation through Sustainable Investment
Time - The Clean Energy Scam

Price of Rice

Sam Sherraden — Wed, 26 Mar 2008 20:30:00 -0400

The price of rice has increased dramatically in the first two months of 2008 according to the Food and Agriculture Organization of the United Nations. Gloria Macapagal Arroyo, the president of the Philippines, recently reached an agreement with Vietnam to guarantee a steady rice supply. Other Asian leaders are also trying to secure their imports. For much of Asia, industrialization has taken precedent over investment in agriculture causing shortfalls in rice production. Factories have taken precedent over rice patties and investment in machinery over research in agriculture.

Snapshot asks, will the rush to industrialize continue to push rice prices higher?

Economist - Empty bowls, stomachs and pockets
Bloomberg - Thailand's Rice Exports Soar on Scarce Supplies
New York Times - Philippines Imports Rice Amid Shortage
Financial Times - WFP plea for $500m to avoid food aid cut
IMF - Coping With Food Price Increases in Sub-Saharan Africa

Brazil's Big Move

Sam Sherraden — Mon, 03 Mar 2008 20:05:00 -0500

Soaring commodity prices and relative stability during global market turmoil has made Brazil the largest share of the MSCI Emerging Market Index, edging China out with a 14.95 per cent share (China holds 14.15 per cent share). While the Chinese stock markets have corrected, the Brazilian market, led by juggernauts Vale and Petrobras, remains high.

Snapshot asks, will commodity prices fall and cause a correction in Brazil's market or will they stay high enabling Brazil to sustain its current rise?

Seeking Alpha - Brazil Takes Emerging Market Crown
Financial Times - The Short View: Brazil’s bull run VIDEO
Morgan Stanley - Brazil: What Impact from Global Turmoil?
Wall Street Journal - Making Money in the Amazon
CNBC - Fast Money: Miami Advice VIDEO