{"id":12727,"date":"2012-07-25T01:29:53","date_gmt":"2012-07-24T23:29:53","guid":{"rendered":"http:\/\/www.myza.co.za\/07\/emerging-bond-investors-chew-over-food-price-threat\/"},"modified":"2012-07-25T01:29:53","modified_gmt":"2012-07-24T23:29:53","slug":"emerging-bond-investors-chew-over-food-price-threat","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/emerging-bond-investors-chew-over-food-price-threat\/","title":{"rendered":"Emerging bond investors chew over food price threat"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>By Alistair Smout<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">LONDON, July 24<\/span> (Reuters) &#8211; Foreign investors have made<br \/>\ngains of some 10 percent this year on emerging market bond<br \/>\nportfolios but now dread future gains being eaten into by an old<br \/>\nfoe &#8212; food price inflation.<\/p>\n<p><span><\/span><\/p>\n<p>Billions have been pumped into emerging market bonds this<br \/>\nyear by investors looking for alternatives to western markets<br \/>\nwhere yields are minimal or even negative, especially in Europe.<\/p>\n<p><span><\/span><\/p>\n<p>Analysts say one reason investors have bought into emerging<br \/>\nmarket bonds &#8212; and still expect further gains &#8212; is that<br \/>\nsagging global growth is seen bearing down on inflation, giving<br \/>\nemerging economies scope for extensive monetary easing.<\/p>\n<p><span><\/span><\/p>\n<p>A sudden rebound in food prices, which often make up a<br \/>\nlarger share of Consumer Price Inflation baskets in poorer<br \/>\ndeveloping countries, has complicated this outlook.<\/p>\n<p><span><\/span><\/p>\n<p>Maize (corn) and wheat export prices jumped some 20 percent<br \/>\nin the first three weeks of July over their June level, the<br \/>\nUnited Nations&#8217; Food and Agriculture Organisation said last<br \/>\nweek. Wheat has risen 25 percent year-on-year.<\/p>\n<p><span><\/span><\/p>\n<p>However, weather-related grain price gains can also be<br \/>\nvulnerable to swift falls. The effect of food price rises also<br \/>\nvaries greatly from one economy to another.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;There have been massive food price rises in the past few<br \/>\nweeks &#8212; before that happened, emerging market inflation had<br \/>\nbeen coming down quite nicely,&#8221; said Maarten-Jan Bakkum,<br \/>\nemerging markets strategist at ING Investment Management.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;If food prices continue to rise, emerging markets look less<br \/>\nattractive as a whole.&#8221;<br \/>\n\u00a0 <span class=\"label\"><strong>Continued&#8230;<\/strong><\/span><\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Alistair Smout LONDON, July 24 (Reuters) &#8211; Foreign investors have made gains of some 10 percent this year on emerging market bond portfolios but now dread future gains being eaten into by an old foe &#8212; food price inflation. Billions have been pumped into emerging market bonds this year by investors looking for alternatives [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-12727","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12727","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=12727"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12727\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}