West KY, Miss River County | China's drought--China's basic philosophy is 'in strength pretend weakness, in weakness pretend strength.' Although their drought is severe, they continually down play the situation. However, their actions reflect a need to import food stuffs.
China's purchases--They continue to purchase soybeans just like SA doesn't have a crop in harvest.
Are they purchasing corn? Sure they are, in the form of DDG's. Why purchase significantly more commodities than normal if you are expecting no decrease in your domestic production?
Earthquake disruptions--Haiti, Chile, China, Mexico--These quakes have disrupted production and commerce. They all are sucking up resources (food, shelter, charitable finances) faster than normal. All production in these areas are down, demand is up-apparently exceeding available supply.
Effect of Icelandic volcano--Past volcanoes have resulted in global cooling and reduced agriculture production. Ash plumes will surround the earth in a few days and we should start hearing of the global effects of this event--probably not warming-eat your heart out Al! Mt. Pinatubo in the Phillipines in That eruption is known to have cooled the planet by 0.9 degrees Fahrenheit. Thus far Iceland is smaller but because it was under the icecap, it carried a lot of stuff into the atmosphere. Read the forecast here .
This article says 4 degrees lower for a year. I believe that it is Quiggly (Harmonic Timing) that factors the impact of volcanoes into the market patterns.
How do you see these events affecting agriculture?
Edited by Ranchhand 4/16/2010 02:12
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Reasons to be friendly to food stuff
