Chop sticks or forks?
Currency UK recently attended the Gdansk Grain Exchange, an extremely successful event for agricultural brokers, suppliers and buyers of grain.
Whilst we were there the price for grain passed the 200 mark. This is a fairly significant event, the last time grain saw such movement was pre-recession mid 2007 (don’t worry I am not going to claim this is an omen of the second dip!). After some research (chatting with drink in hand) we discovered some interesting speculations: In 2007 it was speculated that the huge rise in grain prices was down the a change of taste/custom in China where more forks were starting to be used that chopsticks and therefore more was being consumed!!! This of course is non sense BUT there is some merit in the underlying logic – Chinese tastes were changing, a richer Chinese population was demanding more meet and with more meet more starch/grain based products were being consumed – apparently there is an observed ratio of 1-4 in that for every 1kg of meet consumed 4kg of starch/grain products are consumed hence more meet = more grain = higher grain prices.
Interesting? I thought so…