Global stocks are expected to hit 273 million tonnes at the start of this years grain marketing season, according to U.S. Department of Agriculture estimates, but the problem is that nearly half of it is in China, and they're not likely to release any onto global markets.
China is well aware of what's around the corner, and in recent years has implemented bullish plans to withstand any potential global food shortages.
It is predicted that by the end of the season, the eight major exporters will be left with just 20% of world stocks - or 26 days' cover - down from one-third a decade ago.
The USDA estimates that China, which consumes 16% of the world's wheat, will hold 46% of its stocks at the beginning of the season, which starts now, and more than half by the end.
Comment: Our planet has now reached the tipping point of crop losses due to the erratic climate, and in turn we're seeing stock hoarding, soaring prices, and food shortages for both people and cattle:
- Central European drought reveals ancient 'hunger stones' in Elbe River
- Australia's worst drought in 116 years is decimating animals and livestock
- Unprecedented drought in the Korea's kills 29 people, millions of livestock and decimates crops
- Erratic seasons and extreme weather devastating crops around the world
- 70% crop losses due to extreme weather in Australia
- "A threat to our livelihood": Record drought grips Germany's breadbasket
- Hail damage to croplands in South Dakota so immense it can be imaged from space
- 10 minute hailstorm of "unprecedented violence" destroys 2,000 hectares of vineyards in Bordeaux
- Italian farmers predict crop shortage because of heavy rains while El Niño causes Peru's grape exports to drop 11%
Also check out SOTT radio's: SOTT Earth Changes Summary - July 2018: Extreme Weather, Planetary Upheaval, Meteor Fireballs