In the 1970s, Saudi Arabia began to heavily subsidize wheat production in an effort to diversify its economy. Now, it is reported, the nation has decided to get out of the wheat business. When oil is $100 a barrel, who needs to grow grains? From the Financial Times:

Saudi Arabia plans to halt wheat production by 2016 because of concerns about the desert kingdom's scarce water resources, according to a US government agency.

The Saudi Arabian government has not publicly given details of the move, which comes as global cereal prices surge, driven by strong demand and lagging supply. Top-quality wheat prices for baking bread hit a high this week of $25 a bushel and have more than doubled since January.

The US report said that "the main reason for change in the local wheat production policy was concern over the depletion of fossil water since the crop is grown on 100 per cent central pivot irrigation".