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WSJ: U.S. Cuts Global Grain Supply Outlook; Higher Prices Expected at Grocery Stores

WSJ: “Evidence of tightening global food supplies grew as the U.S. Agriculture Department cut its estimates for global harvests of key crops [see USDA Wheat Data and USDA World Agricultural Supply and Demand Estimates] and ]and raised some demand forecasts, adding to worries about rising food prices…Prices of many agricultural commodities are still below the levels that sparked food riots in poor countries around the world in 2008. But economists see few signs that prices for grain, livestock and cotton will cool significantly anytime soon, signaling potential headaches for consumers and food companies…The strain on the world’s food system is making policy makers nervous. The World Economic Forum cited rising demand for water, food and energy as a risk facing the world, in a separate report…”

  • World Economic Forum – Global Risks 2011, Sixth Edition: “The “water-food-energy” nexus: A rapidly rising global population and growing prosperity are putting unsustainable pressures on resources. Demand for water, food and energy is expected to rise by 30-50% in the next two decades, while economic disparities incentivize short-term responses in production and consumption that undermine long-term sustainability. Shortages could cause social and political instability, geopolitical conflict and irreparable environmental damage. Any strategy that focuses on one part of the water-food-energy nexus without considering its interconnections risks serious unintended consequences.”
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