Wheat and Heat

Huge grain storage bags are seen in Kandiyohi County, Minnesota in this 2012 aerial handout photoWe were promised that climate change would threaten food supplies…especially wheat.

Apparently not.

From Iowa to China, years of bumper crops and low prices have overwhelmed storage capacity for basic foodstuffs.

Global stocks of corn, wheat, rice and soybeans combined will hit a record 671.1 million tonnes going into the next harvest – the third straight year of historically high surplus, according to the U.S. Department of Agriculture (USDA). That’s enough to cover demand from China for about a year.

In the United States, farmers facing a fourth straight year of declining incomes and rising debts are hanging on to grain in the hope of higher prices later. They may be waiting a long time: Market fundamentals appear to be weakening as the world’s top grain producers ponder what to do with so much food. reuters

That is the pesky thing about the real world, it keeps breaking models.

Advertisements
Tagged ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: