Commodity prices are back on the rise after they fell quickly in reaction to the earthquake, tsunami and nuclear crisis in Japan, Purdue Extension agricultural economist Chris Hurt said.
Corn fell 10% in the first few days after the earthquake and tsunami, and soybeans and lean hogs were down 6%.
“However, markets have recovered those early losses as the effects aren’t nearly as negative as we initially thought,” he said. “That’s due in part to the fact that Japan is a wealthy nation and its people will continue to consume their normal products.”
The impact on food likely will center on a reduction in Japan’s production. But Hurt said it likely will be small and mostly can be replaced by importing processed goods from other countries.
Japan is the fourth-largest buyer of agricultural products from the United States. The U.S. Department of Agriculture estimates that Japan will spend $13 billion on U.S.… Continue readingRead More »