Thanks,...keep me on there....or put me on.
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And if reserve-rich China, usually self-sufficient, goes into the world market to buy millions of tons of wheat, the price of wheat can rise to an arbitrarily high level.
There is a root cause to the Egyptian uprising, as I wrote last week (Food and failed Arab states,February 2), and it is not Israel, but China: prosperity in Asia creates inelastic demand for grain, such that a minor supply disruption such as the 2010 droughts in Argentina and Russia causes huge price increases. American economist Larry Kudlow observes as well that ethanol subsidies artificially inflate grain demand as well, contributing to the present price spike.
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My comments
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American economist Larry Kudlow observes as well that ethanol subsidies artificially inflate grain demand as well, contributing to the present price spike.I want to argue with that claim....
Ethanol does NOT use wheat ....
The areas that can grow wheat and corn ( which is used) generally will grow soybeans or corn...
Winter wheat country is predominately not irrigated...and not good for either corn or beans.
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Wonder how the winter wheat crop is looking back home.
Done :)