January 26, 2011

Wheat futures at 29-month highs

Dow Jones reports that wheat futures just hit a 29-month highs on "strong global demand." Per the newswire, Algeria bought 800,000 tons of milling wheat, with traders estimating the nation's purchases for January at about 1.8M. Turkey and Jordan bought wheat last week after rising food prices helped fuel unrest in Tunisia. It seems the rush to the supermarket to hoard food before the tempest has started, they know prices will skyrocket and a lot of fragile developing nations are scared of social tensions and open riots in the coming months.
After all Tunisia was a very efficient police state, we can only wonder what mayhem will be unleashed in failed states and more fragile countries.
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