Crop Prices Soar

Image via Wikipedia
Prices of corn and soybeans leapt 4% Wednesday and wheat gained 1%, continuing the broad rally in commodity prices that began in June. With yesterday's gains, prices of corn futures contracts are now up 94% from their June lows; soybeans are up 51% and wheat is up 80%.

The strain on the world's food system is making policy makers nervous. The World Economic Forum cited rising demand for water, food and energy as a risk facing the world, in a separate report released Wednesday.

A rising global population and greater prosperity, said the report, "are putting unsustainable pressures on resources." The report also raised the specter of shortages, which could "cause social and political instability, geopolitical conflict and irreparable environmental damage." Read more...