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The following article was published in our article directory on October 28, 2010.
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Food Prices Rise Tension of the World

Article Category: Business

Author Name: xia zihui

Rising food prices and food shortages may cause instability in many countries. Staple food and vegetable prices have been high in two years, scientists expect will happen a wide range of drought and floods.

Pakistan and Russia, a serious failure of grain this year, but the whole stock of grain in good condition. However, sugar and rice prices remain at historically high levels.

Reuters / Jefferies index of commodity prices shows that the recent, global wheat and corn prices rose a few weeks to nearly 30%. The meat prices now has reached a new high in 20 years. The United States last week, expects the global wheat production 30 million tons less than last year, a decline of 5.5%. At the same time, the price of tomato in Egypt, China and Pakistan, the price of garlic bread prices are near record levels.

FAO Abdul - Li Sa Aba Xian, said: "From September onwards, the situation continues to deteriorate. Few weeks, there are signs that we are facing the same situation and 2008." He said: "Food prices may not reach that level in 2008, but this time of high food prices may be much longer. "

However, food prices are as of 2008 indicates that the world food crisis is approaching, or merely reflects the country struggling to emerge from recession in the course of global commodity market volatility, it is this obvious differences. 25 countries have been riots in 2008, and from the world food crisis has played a role in fueling.

Worried about food shortages next year, the multinational

The face of rising food prices, rising public anger. Over the past year, Egypt's rising food prices 2l%, India up l7%, many other countries have similar gains. 3 UK food prices up 22% year.

Kenya, Uganda, Nigeria, Indonesia, Brazil and the Philippines have warned the government: the 2010 drought and floods, extreme weather will occur next year, and speculative traders (who buy a large number of stocks until after the rising food prices shot), there may be food shortages next year.

Food prices around the world have not yet reached the 2008 level, but the United Nations's food price index rose by 5% last month, is now in the highest level in two years. Six months, the world's wheat and corn prices rose by 57%, rice and sugar prices rose by 45% and 55%. Soybean prices are currently in the 16 months to the highest level.

Commissioner of the United Nations right to food, Olivier de schuette said that environmental degradation, urbanization and large-scale foreign investors to buy land for the production of the combined effect of bio-fuels, land suitable for agricultural production continues to decline.

The London-based World Development Movement, warned that hedge funds, pension funds and investment banks are likely to drive food prices speculative rise further. U.S. Commodity Futures Trading Commission said speculators at the Chicago Mercantile Exchange this summer, purchased about 40 million tons of maize and 600 tons of wheat futures contracts.

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