Factors that have pushed up grain prices to their highest amounts will remain for at least the next 12 months, according to the top official of a prominent trader of agricultural commodities.
According to the Financial Times, Alberto Weisser of Bunge does not believe that high prices of food are permanent. Yet remarks from the chief executive officer of one of the U.S.' biggest commodities traders do fuel concerns about the likelihood of the inflation of food prices.
"For the next 12 months I think you will see volatility of prices," he told the Financial Times in an interview at the White Plains, New York headquarters.
As the company's top official since 1999, Weisser said he is indifferent to warnings raised by various industry insiders. The United Nations Food and Agriculture Organization's food index rose higher in November than the highest prices during the food crisis of 2008. Rabobank predicted China and India will prompt a market shift by exploring other venues to purchase ingredients for animal feed.
"It doesn't worry me at all," he said. "I think there is enough land available. There is enough water available."
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