Network HC food industry since 2011, and in extreme weather and the decline in the U.S. context of food stocks, including corn, soybeans, wheat, including the world's agricultural products (000061) prices increase the performance was quite eye-catching. At the end of last year hit a new high global food prices, the current number of crop prices continue to rise is affecting all decision-makers of the nerve. Suba Rao, India's central bank governor said Monday, although many countries are currently facing deflationary pressure, but India is faced with the challenge of rising inflation. Looking at the world, in the face of domestic prices continue to rise, many emerging economies now have to raise interest rates, raising the deposit reserve ratio, export restrictions and other measures to be addressed.
World Economic Forum recently released a report that water, food and energy demand is the world's one of the risks facing the economy. The World Bank in a report released the same day was also highlighted, including emerging economies, including India, the future inflationary pressures. These warnings are not groundless. Down last week as the U.S. Department of Agriculture crop production on the world's leading global food demand is expected, and raised expectations for further signs of global food supply appears tight. Meanwhile, the U.S. Department of Agriculture report, global food demand is growing. This includes ethanol producers are likely to increase the use of soybean, as well as further economic recovery in emerging markets, the demand for food increases.
In fact, since last year experienced its worst drought in Russia, the global market concerns about extreme weather had become one of the major global food supply. Recently, Australia, Sri Lanka and other countries hit by torrential rain hit the weather, so that fears further. The report by the U.S. Department of Agriculture, January 12 in Chicago corn and soybean prices hit highest level in more than two years. According to incomplete statistics, the corn futures contract prices have been low since last June soared 94%, while soybeans and wheat rose by 51% and 80%.
soaring food prices in the global context of emerging economies, rising inflationary pressures. India, for example, the latest data show that ended December 25, 2010 week, India's 18.32% increase in food prices, food prices hit the highest level in more than a year, annual growth rate of more than 18%. Sharp rise in prices of agricultural products make all future global food security concerns increase, some experts even believe that the 2008 outbreak of food crisis will be repeated this year. Statistics show that since 2008 food prices rose sharply, has led to high global inflation and caused riots erupted in many countries. Food and Agriculture Organization report released last week said the global food prices in December last year hit a record high, the report also warned that major grain prices are likely to rise further.
But there are economists said that the current situation is still far away from the food crisis, after all, the current prices of many agricultural products is still lower than in 2008 when the food crisis triggered riots around the level. Tracking emerging markets, UBS analyst, recently said the global food price index also have jumped 50%, 3 years ago would have the effect of inflation. Nevertheless, most market participants now believe that, with the tight supply, there are few signs of grain, livestock, and cotton prices to decline immediately apparent. With the prices of some agricultural products
further rise in inflation has become the policy makers and many emerging economies, the focus of international financial organizations. The World Bank report released last week said that the current inflationary pressures in countries such as India, large or is accelerating. In 2011, international capital flows will continue to increase in middle-income countries constitute the support, but when international capital flows In order to suppress prices in recent weeks,
accidents in Peru to raise interest rates earlier this month after the Central Bank and the Bank of Korea on the Zhoutai Guo were also raising interest rates. Analysts said that although some, including Thailand's inflation rate in emerging economies, the central bank target range, but many of the central bank remains vigilant on inflation risks, policy makers may wish to pre-emptive strike on inflation. Many market participants said that with India's domestic food prices have triggered public protests, inflation has made the Indian government to the test.
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