its been some time since I last checked in - been busy and from all my past experience in the sector...more than 13 years...I have never seen one issue play such a significant role in shaping the world trade of agricultural products. Ethanol...has changes the landscape..be it oil palm, soybeans, sugar or even wheat. My only worry is, while farmers are finally beginning to be rewarded (and they deserve more than any banker I know)...it is somewhat worrying that the impact of this renewable sector has had a major role in limiting the availability of food...be it meats (feed is needed for the meat producers), food (wheat in EU is used now as biofuels), rice (China is looking at it) or soy (protein, vegetable oils...u get my drift) - all of these food or certainly food related crops that have a role in sending calorific values across the globe - are being used for fuel.
Could food security be an issue if ythis continues to track oil prices in the coming years?
Or are there new non food crops and alternatives being invested upon? Jatropha is one I can name...
fact is - food - the way it is traded, its opportunity cost as food(should this be the main cost?) and manipulate - has taken on a new form..."transformed" by the combination of capital markets, combined with the wild imaginations of economists to become a completely new animal that needs care, and more understanding.
Traders struggle
Farmers earn (I like this)
Consumers pay more
Bankers dream and manipulate minds and markets
where do we go in the new future.
China, India and the fact that 2 billion people want to live the "America dream" is real. Does mother earth have enought to feed their stomachs, and ambitions...that is the question.
I'm still doing events:
Sugar, Coffee, Rice, Soy, Grain & Feeds all in the next half a year - and all of these offer nice new promise of content, exchange and stimulation.
visit my office website www.ibc-asia.com for details
I hope to write weekly so I can get myself accustomed to this new media. Still plan to keep it private till I build some confidence on my writing skills, communication and views.
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