Across the Midwest, one of the worst droughts in decades is
ravaging crops and driving the price of corn and other basics to record
heights. It’s bad news for consumers, who will pay more at the supermarket as
crops whither in the punishing heat.
But famed commodities trader and finance author Jim Rogers
is making money. Since the beginning of
June, the index he owns -- the Rogers International Commodities Index for
Agriculture, or RICIA, has jumped 18 percent. The index, which tracks the price
of crops globally, is up roughly 10 percent for the year.
"I’m ecstatic to see prices going higher because [that]
might save the day,” said Rogers by phone Tuesday. “People like you are sitting
around saying ‘Oh my God, evil speculators are making money at the expense of
[consumers]. ... If you’re worried about evil speculators making money, go to
the field and drive the price down.” He added: “Who’s going to produce this
food if the prices don’t go higher?”
Agricultural commodities prices are so low that farmers
can’t make a good living, Rogers argued. And as this generation of farmers gets
older, low prices mean less incentive for others to join the profession. All
this is a recipe for a global crop shortage due, in part, to cheap corn, he
said. “You better hope prices go higher
and people make money. If they don’t, we’re not going to have any food....”
