Wheat production in Australia, the fourth-largest shipper, may expand as crops benefit from rainfall in the country’s west and the development of the La Nina weather pattern, according to AgResource Co.
Vegetable oil prices will be the leader to the upside starting next year, said Dan Basse, president of AgResource, at a conference in Geneva today. Latin America is increasing production of biodiesel, which is made from vegetable oils including soy oil and rapeseed oil, he said.
Cargill Inc. Chief Executive Officer Greg Page, who runs the largest agricultural company in the U.S., has a good idea whom to blame for the global surge in food prices at the end of 2010: governments.
Corn and soybeans jumped to the highest prices since July 2008 and wheat rose after the government cut forecasts for U.S. inventories, signaling tighter food supply as demand increases and adverse weather hurts crops.