February 15, 2011

The News and Commodity Prices

When it comes to Commodities and Grain Prices, China is World's largest Wheat Grower Accounting for up to 1/6th of the Total World Output in Good Years. Severe Droughts Throughout China, Appears to be Contributing to the Rising Price of Wheat. As the Harvest is Smaller, Prices Go Up from the Less Supply and More Demand Model. Here is an Article I found in the NY Times Which Writes about the Potential Crop Problems that China is Experiencing. The Wheat Prices are Nearing High Levels hit in 2008: China's Droughts Effecting Wheat Harvest.

As China's inflation rises, the Price for food Also Surges. Here is an Article in the News, Commodity Prices, and Chinese Inflation: Chinese Inflation on the Rise With other World Events Such as the Flooding in Australia or the Fighting Across the Middle East, Grain Prices Should Continue to Rise. There is also high Prices in Coffee, Sugar, Cocoa, Soybeans, and other Commodity Staples. These Increases in Price, will Eventually be Passed on to the Consumer.

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