Ethiopia’s government launched a second tender for milling wheat Tuesday, taking the outstanding volume it is looking to buy in March and April to 1 million mt.
Last week PPPDS launched a separate tender to buy 400,000 mt of optional origin milling wheat.
Ethiopia is still suffering the effects of a prolonged drought that drastically cut domestic production this year and has issued the tenders to curb growing wheat shortages in the country.
Shifting weather patterns linked to historically low solar activity are the likely cause.
Ethiopia was one of the nations first and worst hit during 2007-2008’s World Food Price Crises —link here— where shortages and riots became a regular occurrence. Note the years 2007 and 2008 were at the depths of the previous Solar Minimum (cycle 23).
Back then, several distinct weather and climate-related incidents caused major disruptions to crop production. Perhaps the most influential was the extended drought in Australia, in particular the fertile Murray-Darling Basin, which produces large amounts of wheat and rice.
That drought caused annual harvests to fall by as much as 98% from pre-drought levels.
Severe drought has once again returned to Australia, coinciding with our descent into Solar Minimum of cycle 24.
And when a nation’s domestic food production falls, at a time when the big grain producers of the world are coming up short, then global food prices inevitably skyrocket.
And that’s what we’re seeing the start of now.
Grand Solar Minimum + Pole Shift