Commodities & Metals

Food Prices High Through 2010

Usually the White House does what it can to hide bad news. It is rule of politics never to admit troubling information. Hurts the party and national morale.

Odd then, that the Administration is owning up to the idea that food prices could stay high for a long time.

According to Reuters “High global food prices are likely to linger for two to three years while the world replenishes food stocks, senior White House officials said.”

Much of the blame is going to the use of corn for biofuels instead of food. That part of the logic may be true.

But, the White House still hates to give out awful news, so it is wise to take what is said and double it. That would translate to food prices rising sharply for four to six years.

Douglas A. McIntyre