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Australia's agriculture bureau sounds a contrary signal, saying food costs could tumble in 2011...

Australia's agriculture bureau sounds a contrary signal, saying food costs could tumble in 2011 as high prices draw out more supply. Adverse weather and government policies are the issue, not the ability to produce more food says the bureau's chief analyst. JJA -0.4%. JJG -0.3%. SGG -2.4%.
Comments (6)
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    "...saying food costs could tumble in 2011 as high prices draw out more supply."

     

    That's how my old professor said things should work.

     

    Perhaps it would work in the oil and gas industry?
    1 Mar 2011, 11:10 AM Reply Like
  • kmi
    , contributor
    Comments (3984) | Send Message
     
    Errr... it's easier to grow food than it is to mine more oil, weather permitting...

     

    Even my rather snobish sister in law is going to make tomatoes this next season!

     

    Kidding aside, a lot of NG on the market now, as well as the Brazilian Tupi stuff is alive and well as a result of exploration spurred by the prices in 2007-2008.
    1 Mar 2011, 12:27 PM Reply Like
  • JJA1594
    , contributor
    Comments (67) | Send Message
     
    He's a month shy of April Fool's Day.
    1 Mar 2011, 11:17 AM Reply Like
  • nyuszika45
    , contributor
    Comments (633) | Send Message
     
    Bask in the sunlight of what appears to be a normal market while it lasts. It will soon disappear the way all other normal markets have been eaten by the government/corporate zombie.
    1 Mar 2011, 12:54 PM Reply Like
  • DaveT32
    , contributor
    Comments (19) | Send Message
     
    Grain production growth over the last decade has averaged 2% a year. It would take a 7% increase in production to increase the stocks to use ratio. Sorry but this Aussie is off his rocker. Central banks can't print corn.
    1 Mar 2011, 02:33 PM Reply Like
  • Atkins
    , contributor
    Comments (1037) | Send Message
     
    Australia may indeed be able to increase domestic grain acreage, but that country does not have a particularly good record of doing so. Moreover, any American or Chinese or Brazilian, etc., farmer can tell you that corn acreage is definitely not easy to increase -- especially without disrupting the supply of alternative crops -- in light of different fertilizer needs, etc.
    I

     

    don't think I'd make predictions based on Australian beliefs as to worldwide agriculture. If it were China, Brazil, the US or any of the other larger producers who were talking, I would listen, but note that none of them is echoing Australia's opinion. That says all I need to know.
    4 Mar 2011, 03:18 PM Reply Like
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