August 20, 2012
By Frank Holmes, CEO and Chief Investment Officer, U.S. Global Investors
With the U.S. being the biggest corn exporter and as a result of ethanol mandates to supplement gasoline demand utilizing perhaps greater than 40.0% of this year's crop, we could see food prices surge worldwide, possibly discouraging central banks from easing monetary policy. Last year, 42.0% of China's soybean imports came from the U.S. In 2012, that number has risen to 58.0% year-to-date. One of the catalysts of the Arab Spring was a rise in food prices.
Source: This was excerpted from U.S. Global Investors' Investor Alert, July 27, 2012, www.usfunds.com.
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