Agricultural Commodities Face ‘Tension,’ France Adviser Says

Agricultural commodity markets face “tension” because of tight ending stocks, said Philippe Chalmin, an economics professor at the University of Paris- Dauphine and adviser to the French government. Following are comments he made at a news conference today:

“Where we still have tension ahead is in agricultural products. Where tension is to be expected is in grains and oilseeds. We’re on a razor’s edge at the end of 2010-11. We’re on a razor’s edge because we have no reserves, and in corn, maybe also in soybeans, we could have an accident. We’re at the mercy of the smallest weather disaster.”

“Farmers in France find themselves confronted with a major problem of drought.”

To contact the reporter on this story: Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net.

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

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