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18:44 Wheat - new price records | |
 Cins for wheat on world commodity markets this week upgraded the regular long-highs. Thus, the cost of a bushel of wheat at the Chicago Mercantile Exchange came close to the mark of $ 9, or 331 dollars per ton.Thus, since the cost of this type of grain has increased by 13%.Dynamics of prices for wheat at the Chicago Mercantile Exchange Source: Information and trading platform iTrader 8Thus the dynamics of rising wheat quotations are not isolated cases. During the last two quarters of rises in most agricultural products exchange. This price rally driven by a combination of factors that have a fundamental basis and purely speculative.Accepted at the end of last year, U.S. Federal Reserve's decision to launch a new program of quantitative mitigation, and in fact, dependent emission of dollars of ransom of assets, resulted in quite a natural phenomenon - the flow of funds on commodity and commodity exchanges.In summary, the summer of 2010 such agricultural commodities as sugar, cotton, wheat and corn went up twice.At the same time as the rapid growth in grain prices, market participants try to justify fundamental reasons. So, amid the prevailing drought in the U.S. and China appeared a real danger that a decline in world wheat crop this season.Many experts, including international organizations, is viewed in the downward forecast production of winter wheat in this marketing year. Along with the great losses of grain this summer because of abnormal weather conditions in Russia and some other Eastern European countries, this creates a real threat to grain shortages on the world market.This rising population in developing countries, demand for wheat and other commodities from year to year.According to the International Council of crops, season 2010/11 grain production estimated at 1.725 billion tons, below the previous year by 3,5%, while world grain consumption will increase - by 1.6% to 1786 million tons.Thus, the estimated demand will outpace supply by 61 million tons - of which about 16 million tons due to a possible shortage of wheat and 30 million - a deficit of maize.Formed situation allows traders to easily "push" quotes wheat and corn to new record levels.In adverse weather conditions is another circumstance that provokes a sharp jump in grain prices in the first place, to "ill-fated" wheat and corn. The reason - rising oil price.Dorozhchayuche "black gold" creates additional demand for certain types of grain, used as feedstock for biofuel production. Since the oil prices at $ 100 per barrel and higher economic feasibility of producing ethanol from corn and wheat increased significantly, both the interest in these crops by individual manufacturers is also increasing.As a result, today there is practically no objective reasons to run a few months expect changes in the trend of rising prices for commodities such as wheat, corn and others.Unfortunately, such a turbulent market rally in agricultural products is the only positive event for the exchange of players, but for the world economy in general and especially for developing countries, rising grain and other agricultural commodity leads to a sharp rise in food inflation.For example, one of the main reasons for people's unrest in Arab countries is just a sharp increase in food prices.Yes, less than half the cost of individual goods in Egypt, Tunisia and other countries in the region grew twice. In fact one can speak of a direct connection folk protest and the situation on world commodity areas.
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