Friday, April 8, 2011
Food prices are on the rise
Is this the beginning of a food bubble? The price of food (hey... I need that to eat) is skyrocketing. So is the value of farmland. Of course, there are many explanations for the rising price of food. The US is out of corn, which is driving up the price of corn futures. India and China are consuming more food, especially diary, which is driving up worldwide demand, but it is not known how this will interact with a predicted increase in inflation in China. The Dodd-Frank Act regulations on commodities swaps are being delayed, but as of now, commodities are not ubiquitously rising, as they were immediately prior to the commodities crash of 2008.
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