adam2 wrote:I agree that food is even more important than oil, some of us could survive without oil, but no one can live without food.
The prices of food and oil are closely linked, rising demand for bio-fuels will tend to increase food prices since most (not all) bio-fuels are grown on land previosly used for food production.
The rapidly rising oil price is of course increasing the costs of running farm machinery and of producing agro-chemicals.
We may see tractors replaced by horses or oxen, this though reducing reliance on oil, will reduce food production since such animals require considerable fodder.
Not all foodstuffs have gone up as much as wheat, though AFAIK all major crops have gone up by more than inflation.
The only other major calorie provider to the world is rice. I have no idea how much that has gone up.FT wrote: Corn +45.82%
Wheat +187.56%
Soybeans +89.41%
Soybean Meal: +67.99%
Conversion away from oil will reduce yeilds that are already struggling to feed everyone. The high prices (some due to 'investment money) will result in starving people and mountains of food no-one can afford. Back to the old food mountains again...
I suppose this is the 'market' in action.