Wheat Collapsing as Protests Prompt Speculators to Desert Food

Wheat Collapsing as Protests Prompt Speculators to Desert Food

www.bloomberg.com

Wheat fell for a third day in its biggest collapse since 2008 and rice fell as traders speculated that riots in North Africa and the Middle East will curb demand from regions buying 32 percent of global shipments.

Wheat, rice, corn and soybeans fell by the most allowed by the Chicago Board of Trade yesterday as violence escalated in Libya. Leaders were already toppled this year in Tunisia and in Egypt, the world’s biggest wheat importer.

(visit the link for the full news article)

What can I say...
With so much instability in the region these speculators have to be worried about who is going to write the checks when payment for goods and services are due...

that does bring up a new social issue though even if food prices are falling once a government is toppled will that countries money still have value??? if the answer is no ???
they might face some serious new challenges!

www.bloomberg.com (visit the link for the full news article)

There was some other posting on why the food prices were dropping, thinking that food crisis was made up, but this does give a good reason as to why the food prices are going down, very interesting how you would expect it to have the opposite effect. But since those are the big consumers, and demand is lessened because they are not able to buy or pay with the fiat money they have, it creates larger supply for others and less price. Interesting to say the least. Great find

This is definitely one big roller coaster ride. I don't know which side to cheer for. First the huge story of world food shortages, and prices escalating thru the roof. Now prices tanking on the food because of anticipated decline in demand. Quite honestly, with the fluctuations of currency, futures and supplies globally, I think ANYTHING can and will happen.

I heard a good theory about this yesterday, since it's very obvious this is a clear market manipulation.

That TPTB were getting worried as food prices were too high and it caused too much unrest among the poor populations.

And this could be a indirect attempt at quelling some of this unrest.

It's just a hypothesis so take it as it is. Add or subtract from it as you like.

Originally posted by BearTruth
This is definitely one big roller coaster ride. I don't know which side to cheer for. First the huge story of world food shortages, and prices escalating thru the roof. Now prices tanking on the food because of anticipated decline in demand. Quite honestly, with the fluctuations of currency, futures and supplies globally, I think ANYTHING can and will happen.

Lets see, world population keeps increasing.

So how could there be a "decline" in demand?

It seems fairly obvious there are illogical manipulations going on here.
That means someone owns large portions of the markets and is throwing their weight around for political reasons.

Its not that demand is decreasing its just that demand is being shut off from consuming all together and therefore decreases the demand like crazy. Of course once that demand is able to aquire the food well then things will be screwed again

you all are missing the point...
in global food markets the mid east and north Africa buy about one third of the markets supply...
but if their all in an uproar that markets gone... not because of lack of demand but because of fear that payments for said orders will never be made... get it...

The real demand is much greater.... Though there may not be any money with which to purchase the wheat.... The revolution in both Tunisia and Libya had the price of food as a sparking factor...

Hmmm, prices are going down because people think that Bernanke won't be able to continue with his QE program anymore... that means no more printing... that means no more created hyperinflation.

Nothing about those countries not importing as much. People always need to eat. Or maybe they think they're all going to die and won't need to eat.