The Wall Street Journal (WSJ), in its article, "Soaring Demand for Grains Roils World Markets," highlights the fundamental change that is taking place in the global food markets as commodities prices rise and demand surges.

Financial Intelligence Report (FIR) has been at the front of this trend and has recommended investments in commodities, especially agricultural commodities, for many months now.

In fact, we devoted the July issue of FIR to this subject, with the headline, "The Commodities Bull Market Rages On." Just two months later, our commodities recommendations are up as much as 16.4 percent. Go here now to get our latest commodities recommendations.

And how it has raged!

The Wall Street Journal points out that "prices of Illinois corn and soybeans are up 40 percent and 70 percent respectively, from a year ago. Kansas wheat is up 70 percent or more."

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And yet, our government kids us that our inflation rate is still only 2 percent!

The WSJ says, "Rising prices and surging demand for the crops that supply half of the world's calories are producing the biggest changes in global food markets in 30 years, altering the economic landscape for everyone from consumers to corporate giants and the world's poor."

The article goes on to describe how, "In the past, such increases have been caused by temporary supply disruptions. …But the current rally, which started a year ago in the corn-futures trading pit at the Chicago Board of Trade, is different."

We believe this is alludes to a vitally important point of massive change affecting our world in number of ways.

Many millions of people whose staple diet was rice and chicken are now able to afford imported wheat and beef. Those who pushed carts now drive oil-driven vehicles. Those who drank water now drink milk. Those who burned wood for heat now burn oil.

This all adds to a massive new demand for commodities.

[Editor's Note:Special: Where Are Oil Prices Headed? Click Here.]

The WSJ quotes Dan Basse of AgResourse Co., a Chicago commodity forecasting concern as saying, "The days of cheap grains are gone."

An excess of demand over supply will drive prices up.

A plunging dollar will drive commodities priced in dollars yet higher, as we are seeing in the price of oil, for instance.

A few days ago, we said that every single man, woman, and child in America would pay a price for the recent Fed rate cut. Rising prices of milk, oil, chocolate, and bread are just some of the costs.

Editor's note:
Special: Where Are Oil Prices Headed? Click Here.
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