While commodities have recently sold off, there is a real and developing #foodcrisis that is not being seriously discussed. If you think the situation doesn't matter, you should read this thread👇
Indonesia exports roughly 300,000 tonnes of beef annually, amongst other proteins, and is facing the first outbreak of FMD in 40 years. The potential spread of the disease to Australia is a serious concern.
aljazeera.com/economy/2022/7…
aljazeera.com/economy/2022/7…
West Texas is facing the worst drought it has had since 2011. In 2011 it is estimated the drought caused $7.62B in ag losses.
texastribune.org/2022/06/28/tex…
texastribune.org/2022/06/28/tex…
WASDE estimates that the US ending stocks of spring wheat will be the lowest in 15 years.
dtnpf.com/agriculture/we…
dtnpf.com/agriculture/we…
California is facing a large drought, potentially doubling the amount of idle cropland.
bloomberg.com/news/articles/…
bloomberg.com/news/articles/…
Non-commercial African farmers make up roughly 30% of the supply and are crushed by skyrocketing input prices while also facing more arduous financing arrangements.
reuters.com/world/africa/o…
reuters.com/world/africa/o…
China has been shoring up commodities and has issued phosphate qoutas as they prepare for the future.
reuters.com/article/china-…
reuters.com/article/china-…
With such a tight supply, food prices will continue higher and those are the margin that will be most impacted.
esmmagazine.com/retail/grocery…
esmmagazine.com/retail/grocery…
Ultimately leading to pressure (and concessions) by those in power.
@kittysquiddy
@michaeljburry
@profplum99
financialpost.com/pmn/business-p…
@kittysquiddy
@michaeljburry
@profplum99
financialpost.com/pmn/business-p…
Some additional readings⬇️
bloomberg.com/news/articles/…
bloomberg.com/news/articles/…
Some historical context:
ifpri.org/publication/re…
ifpri.org/publication/re…
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