Asia prepares for food price shock

August 17, 2012 ECONOMYSince mid-June, grains, namely corn, soybeans and wheat have rallied 38 percent, 24 percent and 45 percent, respectively, after the worst U.S. drought in a half a century wiped out crops in the world’s biggest agricultural exporter. This prompted warnings from United Nations that the world could see a repeat of the food scare seen in 2008 as prices rose too rapidly, and officials from the Group of 20 countries to plan a meeting to discuss ways to cope with the price spikes. While grain prices fell in New York on Tuesday because of rain across most of the Mid-West, prices will persist around current high levels, economists from Standard Chartered said in a report published this week. This is especially the case should high temperatures persist across much of the U.S. well into August, they said. “If the price rises are sustained in the months ahead, we expect higher global food prices to affect Asia in early 2013, as our correlation analysis suggests a time lag of five to seven months for most Asian economies,” according Tai Hui, Head of Regional Research for Asia with Standard Chartered. Asia was hit hard in 2007 and 2008 when shortages of foodstuffs, especially rice, led to hoarding and riots. Food inflation hits Asia harder than other regions food make up a greater portion of consumer spending than in other parts of the world. In developing Asia, for example, it makes up 35 percent of consumer prices, compared with about 20 percent in the U.S. and Europe, according to the International Monetary Fund. Economists at Nomura also raised the alarm on inflation in Asia last week, saying that large moves in global commodity prices could have an “acute” impact on Asia, given that the food component in CPI is very large”. Food prices are far more important than energy prices in driving Asian inflation – the weighting of food items is typically two to three times larger than that of energy items in Asian CPI baskets. Food inflation will start hurting Asian economies by the end of the year if the current high prices are sustained over the next few months, with Vietnam, China and Hong Kong the most vulnerable, economists tell CNBC. –CNBC
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This entry was posted in 2012, Civilizations unraveling, Climate unraveling, Drought, Earth Changes, Earth Watch, Environmental Threat, Extreme Weather Event, Famine Threat, Food chain unraveling, Human behavioral change after disaster, Mass animal deaths, Prophecies referenced, Time - Event Acceleration. Bookmark the permalink.

13 Responses to Asia prepares for food price shock

  1. Just think, this is just the beginning of worse famines to come. The world that we have built is coming apart more rapidly than ever, and the time to turn to God has never been shorter.

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    • We are one event away from things going ‘haywire’ on planet Earth. The world is populated by madmen, whose hearts are seething with hatred and violence towards their fellowmen. They would love to drag us into their nightmares of the way they think the world should be; absent this or that race or nation. We would all do well to remember the tension is winding tighter in the clock as the hands move.

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    • Eileen says:

      You are right my brother, eileen dimeco

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  2. Skeptical citizen says:

    If Israel attacks Iran that could be the event that causes everything to go haywire. Those folks shure behave like madmen. Nobody can win.

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  3. Eileen says:

    The third seal (black horse) is going to be opened….now we are in the second seal of red horse of war. Maranatha

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  4. Brandon says:

    Alvin,
    I have a soft heart and want so much to believe the horrors of the Tribulation are nothing but mere bedtime ghost stories. But Isaiah and other parts of the Bible speak of unprecedented world destruction that makes the survivors scarcer than gold. You say we don’t have a doom laden fate, but then say that soon destruction and death will March across the planet and you would be lucky if 75,000,000 survived when it’s all over? I’m confused. No debunking intended whatsoever. Just a bit confused is all. 75,000,000 survivors sure seems doom laden in my opinion. Are you thinking that we may be coming out of the woods here?
    Your friend,
    Brandon

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    • We control what’s ours to control and we shouldn’t worry about what we cannot. The question was asked in regard to the geo-political crisis brewing in the world. Brandon, people are uneasy about the idea of an extinction taking out that many lives on the planet; yet, World War II, a war of violence by our own hands, killed 50 million people and nobody bats an eyelash or retrospectively gives it a second thought.

      Your friend
      A.

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  5. Luciano says:

    Let’s not kid ourselves it’s going to have an effect on us too for they have enough of our dollars to deplete our food supply and we to will experience a food shock. They’re propably started the buying already.

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