A World Food Shortage Is Looming, Buy Ag Stocks

Seeking Alpha ^ | May 31, 2011 | David White

[WILLIALAL]

The world grain inventories were already depleted from truly terrible weather in 2010. Now we are seeing even worse weather so far this year. China is experiencing its worst drought in 50 years. The government says this weather is decimating a major grain belt, and it is leaving livestock without water. Fish farms have been ruined. Who knows the long term effects? More than 4.3M people are having trouble finding drinking water. Actually this last is a much bigger problem throughout China, which has a long term drinking water problem. The Chinese have released extra water from the Three Gorges Dam to partially alleviate the drought downstream of the dam in the Yangtze drainage basin. If there is no rain by June 10, the Chinese will lose the ability to do even this. Not to be outdone, Europe is in the midst of its worst drought in 44 years.

[StormEye]

"Droughts in China, Russia,and you know however bad it is elsewhere it will be ten times worse in Africa. Get ready for the starving, pot-bellied, fly-encrusted children."

The world will blame America as usual. Don't be surprised.

[Zman]

Have a look at USCI instead of DBA. It addresses backwardation, which can have a negative effect on profits.

[bkopto]

For me “Ag stocks” could be interpreted as silver (Ag in the periodic table of elements), in which case I would recommend Eric Sprott’s PSLV fund - stay away from the ETF SLV, however - it is just silver paper (tongue in cheek - don’t get mad at me!)

[chainsaw]

But the U.S farmers are busy planting CORN for Ethanol.

Either way you can eat it or drink it.

[chainsaw]

Just how much corn has been planted this year, with all the wet weather? Any reports out there?

Here in Illinois they are planting 24/7 when the weather allows. They can plant a lot of corn. in a day, with a 32 row planter and GPS controls.

It’s really something to climb up into the cab and ride a couple of rounds. Once the field is defined, it’s hands off until the entire field is planted.

[chainsaw]

Good one. ROTFLMAO

[Marty62]

Yes no need for a still.

[goodnesswins]

Well...with what YOU said, then I’m looking brilliant, because I’ve been stocking up on food since November 2008...figuring this is what would happen with a commie/socialist at the helm.

[SunkenCiv]

One-half gallon of oil in the form of pesticides per bushel of corn would cost $2 to $3 per bushel. If this were true -- and it clearly isn't -- it should be enough to illustrate to literally anyone that the price of petroleum is quite literally the ONLY thing driving corn prices. And this idiotic piece of agitprop -- from a hydrogen "energy" advocacy site -- also shows the guy in the encounter suit spraying chemical fertilizer, a sight that I've never been privileged to see, what with me *growing up on a farm*. The Bum Rap on Biofuels Campaign to vilify ethanol revealed