Speculators Target Food
Aug 20, 2007 (LPAC)--Food prices are rising rapidly, as Goldman Sachs and other speculators call for investing in agricultural commodities, including sugar, corn, wheat and coffee.
"If we see a global slowdown developing, it won't affect agricultural commodities because people still eat," Bloomberg quoted a commodities broker. "Steel, iron ore, nickel may suffer. But people will go to the shops to buy bread and potatoes."
The same speculators and hedge fund managers responsible for the current financial collapse, including Marc Faber and former George Soros partner Jim Rogers, are also behind the flight into agricultural commodities, which promises to drive food prices through the ceiling. In an August 16 email, Farber wrote that agricultural commodity prices are "attractive," and advised his clients to invest in them. Commodity brokers are already speaking of a doubling of the sugar price to 20 cents per pound over the next months.