Rising commodity prices are worrying governments around the world as they fear food riots could erupt again - much like they did in 2008. The United Nations reported that countries in Latin America and Africa are most at risk for food riots as the prices climb.
Protests in the Middle East and North Africa in recent week were partly fueled by the rise in food prices, which the UN said reached record levels in January. Robert Zoellick, the president of the World Bank, said in a speech Tuesday that food prices are increasing to "dangerous levels and threaten tens of millions of poor people" around the world.
The UN Food and Agriculture Organization identified countries around the world that are most sensitive to surging food prices, affirming "the low-income food deficit countries are on the front line of the current surge in world prices." Among other countries, governments face the "major burden" of higher food prices in Uganda, Mali, Niger, Somalia, Kyrgyzstan, Honduras and Haiti, the UN concluded in a report.
Inclement weather around the globe and simple supply and demand fundamentals have coalesced to drive commodity prices to near record levels over the past year. The World Bank estimates that mounting prices have pushed 44 million people into "extreme" poverty in developing countries since June.
SOURCE: http://www.ccstrade.com/futures-news/grains/story/rising-commodity-prices-threaten-stability-in-latin-am-800412848/
SOURCE: http://www.ccstrade.com/futures-news/grains/story/rising-commodity-prices-threaten-stability-in-latin-am-800412848/
