Extreme Weather and Food Inflation

You do not need to be a farmer or an economist to Buy Tera Gold understand that weather events can have a dramatic impact on agricultural production from one year for the next. Considerably in the country has received above-average rainfall in the past few months and there has been widespread flooding consequently. The Mississippi River, for instance, is at present experiencing a 100-year flood event.

If you live in most parts of the country - including the West Coast, the East Coast, or the Midwest, you might not recognize that Texas as well as the higher Southwest have scarcely received any rain at all this year. The truth is, significantly of Texas is currently suffering via an "exceptional" drought - the highest level achievable. In other words, if the drought in Texas were a hurricane it could be a "Category five." A drought basically does not get any worse than this and the present circumstances inside the Southwest have been compared towards the dust bowl years from the 1930's. The fact is, the seven month period from October 2010 through April 2011 is officially the driest ever recorded in Texas.

Partly as a result of the drought, Texas has also been scorched by wildfires this year. Based on the Texas Forest Service, wildfires have burned 2.5 million acres within the state just within the first 4 months of 2011. This represents a burned land region that is almost equal in size to the whole State of Connecticut.

We are experiencing each a 100-year flood as well as a 100-year drought occurring in neighboring states, with the ultimate impact on agricultural commodities becoming the same: lower provide and greater costs. The U.S. drought monitor shows just how poor the scenario has develop into. Those of us who live in Texas and the greater Southwest are hoping for some rain to come our way, even though long-term weather models show small rain within the forecast till July, at the earliest. Meanwhile many people in the remainder from the country, and especially the Midwest, are praying for the rain to finish Tera Gold. Regardless, considerably from the harm for this year is already carried out and I suspect that the recent cost decline in agricultural commodity markets might be near its end, as the fundamentals of supply and demand once once more move to the forefront.