Droughts in Russia, monsoons in Pakistan. Weather once again is
being blamed for lowering expected global food production. But
by focusing on the weather, a more significant factor behind
high prices escapes scrutiny: a massive amount of financial
speculation in food commodities. This was a key cause of the
2008 food crisis. And it's returned. In short, the agriculture
bubble is back for an encore. It needs to be kicked off the
stage once and for all. As in 2008, food prices on world markets
have been soaring. In 2010, wheat climbed 47 per cent, soybeans
were up more than 34 per cent, and corn rose 52 per cent. Until
recently, 2011 has seen little meaningful reprieve for
consumers. Social unrest has resulted from these high prices,
with food riots erupting in many African countries, most notably
Tunisia and Egypt. These demonstrations are perfectly
understandable given the misery caused by skyrocketing prices:
In February, the World Bank estimated that 44 million people
have been pushed into poverty by food p