where are the 8 dollar gang, page-31

Long term grain prices will largely driven by OIL. I don't believe one year of high prices for grain can undo what 8 years of undersupply relative to demand in the last 9 years has done. Oil has corrected sharply, its still $114, still amply high enough to ensure more and more food heads to the combustible engine.

High fertilizer prices WILL affect grain output next year and that WILL be bullish once again for grain prices. And so the next cycle begins ...

But a lot of money has vapourised lately and that will affect speculative inflows into anything and everything (unfortunately). Meanwhile everyone will continue eating ...