Good News from the Farm Sector

Source: The Economist

World production of grains will rise by 7% to a record 2.5 billion tonnes in the 2013-14 crop year, according to the Food and Agricultural Organisation. This will boost global end-season stocks in 2014 by 11%, to 568m tonnes—the highest level for 12 years. 

Economists tell us that if supply increases, prices are likely to go down. That would be good news in a number of ways. Of course, it could be that some of the increased production will be retained as stock to forestall future shortages.