"And the farmers world wide are likely to step a their production. I know here in Australia the old Wheat Board used to limit how many acres the farmer could plant to get their floor price. I believe there is a lot of spare capacity. In Us they have been paying farmers NOT to plant wheat and other produce.'
There is not a lot of spare capacity. If there was, prices wouldn't have taken off like they have. This was the case ten years ago, but not now.
All these 'experts' are saying there will be a supply response to the high prices, but I reckon the high prices are because farmers are at full capacity now. It's the chicken and egg story.
The need to get some farmers to work out food supply, not a bloody economist.
