World Food Supply is Looking Like Lehmans Balance Sheet

Based on the food and agriculture organization (FAO) data, the production of cereal, wheat, rice, and corn is getting more uncertain due to weather anomalies in the producing countries. Cereal production is expected to drop 1.4% to 2.22bn ton for 2010/2011 period vs. 2.6bn ton in 2009/2010. On the other hand, wheat price has also been soaring by 47% in the USA in the past one year to US$324/ton. Whiterice in the global market has also increased by 5% MoM to US$566/ton due to tightened supply from Thailand and Vietnam. (Bisnis Indonesia)