The countries that comprise 75% of the world's agricultural output are experiencing drought conditions. The scarcity of rain in the north and central provinces of China is the worst in recorded history. Australia has experienced drought since 2004, with 41% of its agricultural base suffering the worst drought in 117 years.
In the United States, continuing drought conditions are affecting California, Texas, Florida, Georgia and the Carolinas. The hardest hit in South America are Brazil, Argentina, Paraguay, Uruguay, Bolivia and Chile.
Africa faces food rationing and famine from lack of rainfall in Kenya, Tanzania, Burundi, Uganda and South Africa. Other African nations suffering from drought are Malawi, Zambia, Swaziland, Somalia, Zimbabwe, Mozambique,Tunisia, Angola and Ethiopia.
The Middle East and Central Asia are suffering from the worst droughts in recent history affecting Iraq, Syria, Afghanistan, Jordan, Lebanon, Israel, Bangladesh, Myanmar, India, Tajikistan, Turkmenistan, Thailand, Nepal, Pakistan, Turkey, Kyrgyzstan, Uzbekistan, Cyprus and Iran.
With a 20 to 40 percent decline in world food production, already rising food prices are headed significantly higher. Coming at this time when global food stocks are at an all time dangerously low level, political turmoil between nations could be a result.
Disclosure: No position.