Yesterday the United Nations Food and Agriculture Organization reported that world food prices stabilized in August at levels close to those during the 2008 food crisis. While the current prices are no justification for talk of a world food crisis the FAO Director has called for international action to further calm markets. Jim Bower of Bower Trading says this directive will be pushed even harder if there are cropping problems that emerge anywhere else in the world.
The FAO is reassured the U.S. drought won’t pull the world into a similar situation as in 2008, but Bower says that could quickly change after the November elections.
In 2008 the GAO declared a food crisis when world prices rose 8-percent.