The world financial crisis may have been alleviated by the actions of Central Bankers and Governments but the crisis has destroyed the confidence of much of the investing community. As a result of falling asset values, shares and real estate, consumers have held back spending waiting for some clear evidence that the economic malaise that this has produced is easing. This pull back in expenditure has worsened the crisis and now economic growth expectations are being revised downwards at regular intervals. Just where this will all end is now the major worry for most with the fear of losing a job one of the main concerns.
While prices for most agricultural commodities have fallen significantly from their peaks, they seem to be stabilising at a level well above historical average levels. The fundamentals have not changed and the threat of more periods of food shortage loom now that prices are lower. Will these lower prices actually reduce production in 2 ...