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Traders Betting Price of Rice Will Rise Some More; Moving Day for Hundreds of Children Taken From Polygamist Compound in Texas; Gasoline Prices Continue to Rise
Aired April 24, 2008 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: There you can see how widespread. And you know, this is a fairly populated area. You know, this is just not in a remote section of Texas. But right outside the Dallas-Ft. Worth area, very populated, very densely populated. You can see the various neighborhoods clustered there. Sizable damage to those homes.
TONY HARRIS, CNN ANCHOR: And it's part of the reason, I supposed, Rob is concerned about what can happen today when we get the daytime heating as this system moves into the midwest now. Talking about places like Missouri where, you know, this storm system could possibly, Rob, stoke up some severe weather in the midwest as well today.
ROB MARCIANO, CNN, METEOROLOGIST: Yes and farther north. The thing about this time of year is you can have a system -- you can have a blast of these thunderstorms that have tornadoes blow through. And then, you know, the same situation can set up in a similar spot. You know, it doesn't necessarily move from west to east. You know, like we think of the rest of the year. It can set up multiple days in tornado alley like this. So, I'm going to switch. While we look at this video, to give you an idea of where this happened. Again, I think Fredricka pointed it out.
WHITFIELD: Tarrant County. Yes, Crawley.
MARCIANO: Yes, just south of Ft. Worth. There was a report - we're trying to figure out, the time confusion as far as when these reports came in. Certainly if you live in this area, I invite you to call or send us an I-report with some information on this. But this google earth highlights a tornado citing, an official tornado sighting just to the west. At around -- what time was that? That was around 10:00. Ten o'clock. And then, I'll switch it - here's Crawley. So, I'll switch it to this radar which we backed up to last night. 8:30 last night. Here is Dallas. My goodness. Here's Ft. Worth. Okay. Hail. That's nasty. That's right where --
WHITFIELD: That's large.
MARCIANO: That damage. Yes. Big cell. Certainly with some rotation. There was tornado warning that was posted. There were two, one at 5:00 and one later on between - around this time. So, we think this is the cell that happened. So, you see just a whole thing collapsed and then bow out like that. That probably has some straight-line winds that did some damage at east Waco. But certainly right around here is where that happened. And the only reason that I'm hesitating here is because the reports with this timing don't quite line up. But, you know, it could be a delay and when you think -- nonetheless, looks like that was certainly -- that damage certainly is from tornadoes. The National Weather Service is going to out there and check it out.
WHITFIELD: Yes.
MARCIANO: And see if things happen. So, getting back to your point, Tony. Everything moving now to the east. These are kind of your garden variety type of thunderstorms. So, just some heavy rains, some gusting winds. Maybe, a little hail in spots in Portsmith. But right now, we don't have anything that's too severe. Flooding a big concern right now. Columbia, Jefferson, Missouri, southeast Missouri. But now that things are beginning to clear out into parts of St. Louis. Watching another router where there is a bear in Paramus, New Jersey. So, distracted by that. I assume that you're going to show that in a second.
HARRIS: Sorry.
WHITFIELD: There is a lot going on.
MARCIANO: 2 1/2 to 3 inches of rainfall there in the last 12 hours. Everything is moving. I just want to get to one map that will highlight where not only the flash flood watches and warnings are up. Give it to me but where we think the greatest severe weather threat is going to today. So, we shifted farther to the north, northern Kansas, southern Nebraska. And the cap popper (ph), the energy will be released in the atmosphere late afternoon into early -- same time last night.
WHITFIELD: Wow.
HARRIS: That's a lot going on. Appreciate it. Thank you, sir.
WHITFIELD: And of course, when the weather becomes the news, just like here, remember to send us your i-reports. Go to cnn.com, and click on i-report. Perhaps you live in that Tarrant county area. And there are some images and explanations behind those images that you would love to convey to us or, of course, by going to cnn.com. You can do that on your cell phone as well as your laptop or your desk top, whichever way to convey the message. We appreciate it.
HARRIS: Boy, surprise, surprise on aisle 6. Some of the nation's largest warehouse stores limiting how much rice you can buy. The reason, soaring prices and rising concerns of a world food crisis. Some people in the businesses are clearing the shelves. That's because U.S. rice prices have nearly doubled in the past few months. And food shortages have triggered panic and rioting in parts of Asia and Africa. Look at these scenes. Over food. Rice experts say rising demand from developing countries and poorer crops have strained supplies. But they say there is no underline that for a moment - there is no global shortage. By the way, U.S. rice futures hit an all-time high today. WHITFIELD: Traders are betting the price of rice will rise some more. It's one reason why you are paying more for food overall at the grocery store. Here is senior business correspondent Ali Velshi.
(BEGIN VIDEOTAPE)
ALI VELSHI, CNN, SENIOR BUSINESS CORRESPONDENT (voice-over): As the housing market continues its plunge and stock markets gyrate, one market, the market for commodities futures, stays red hot. In the past year alone, corn futures have spiked more than 60 percent. Soybeans, over 90 percent. And rice has more than doubled. Hedge funds and other pools of big money are pouring billions into commodities. They want a better return than real estate, the stock market, or the U.S. dollar can give them. Why do you care? Because the speculative fever is finding its way here to the checkout line.
LAKSHMAN ACHUTHAN, ECONOMIC CYCLE RESEARCH INSTITUTE: When we get the momentum in a market going one way, smart people can make money doing that. And that's what their job is, what's happening now, and this is showing up and impacting people very much on main street and on their dinner tables.
VELSHI: Now, to be fair these high prices are not just caused by speculators. Bad weather has caused the price of food grain to spike and growing demand from emerging markets like China and India and a weak U.S. dollar is also playing a part. But as futures markets rally, companies that buy crops to make food must swallow higher prices to guarantee future delivery of the raw goods that they need. And that's driving prices even higher.
KENDELL KEITH, NATIONAL GRAIN AND FEED ASSOCIATION: It also adds to the cost in the marketplace, for merchandising and marketing grain.
VELSHI: Bottom line, at least some of the price boom appears divorced from the laws of supply and demand. Proof say some economists, easily traded commodities like corn and wheat are showing historic gains while commodities not aren't widely traded like rubber and burlap are up by a much smaller amount. Others say that connection is tougher to make.
It's very difficult to say exactly how big of a role speculations play. I think it is relatively minor. Speculators are not setting the trend. They are just following the trend.
VELSHI: Traders say the fundamentals play a much bigger role than speculation. Drought in wheat growing Australia, for instance. And they say don't forget higher oil and gas prices make it more expensive to produce and transport food. Now, you would think farmers here in the U.S. would be happy about these high prices. But even some of them are complaining that all of these speculation is throwing the whole market out of whack. They say they are not feeling the full benefit of the price increases and they're asking the U.S. government to somehow limit speculation in food markets. Easier said than done. But speculation in commodity markets is provoking food rage.
ACHUTHAN: When you have, you know, your milk price double or your bread double or something like that because of some financial gyrations and you say something is wrong here. And I think that's what people are reacting to and feeling right now.
VELSHI: It maybe wrong to some but a global market is a hard thing to stop. Ali Velshi, CNN, New York.
(END VIDEOTAPE)
WHITFIELD: Feast, famine, and finger pointing. We'll look at food crisis overseas and what the United Nations says is making it worse.
HARRIS: Were you with us just a moment ago when we were sort of showing you the pictures of all of the damage in Texas? Rob mentioned that there was a bear sighting in New Jersey. We have the video now to prove it.
WHITFIELD: And there is the bear.
HARRIS: Look at the bear.
WHITFIELD: He is beautiful.
HARRIS: Yes.
WHITFIELD: I know frightening but come on, beautiful.
HARRIS: Paramus, New Jersey. Our friends at the New York affiliate, WABC grabbing these pictures of the bear. Clearly maybe just -- a little lost, wandering and looking for some food.
WHITFIELD: Looking for food.
HARRIS: But here is the issue. The bear is near a high school. And the kids don't want to be the food. OK, so this is the situation right now. What they have done is they decided to just cancel classes there at Paramus Catholic High School, very near where the bear is roaming.
WHITFIELD: I'm wondering even on the property. Because I just saw what looked like a kick ball in that field where that bear is walking by. So, I wonder if this video -- because it is a tight shot, we are unable to discern clearly. But I wonder if this video is right there on the property of Paramus Catholic High School.
HARRIS: Exactly. So, with all due caution, the school has canceled classes and the bear just looking to get back home and get a little snack.
WHITFIELD: A little forlorn.
HARRIS: Yes. So, we'll just keep an eye on the situation for you. Maybe bring you an update if there's information.
WHITFIELD: That's a beautiful, healthy bear.
HARRIS: Yes, beautiful bear.
Another day, another record. And all we can seem to do about it is grin, grit our teeth maybe and just bear it. Sorry. Gasoline prices go from creeping to leaping. Up more than two cents overnight. AAA puts the national average in just over $3.56 for a gallon of regular. A year ago, it was $2.86 a gallon. Premium is now $3.91. Make it stop. Make it stop. Diesel off the charts at $4.22.
Analysts predict that many of us will soon be paying an average of $4 for a gallon of regular gas. Keep watching CNN. Our money team has you covered whether it is jobs, debt, housing, your savings, join us for a special report for -- this is a terrific show. It's called "Issue #1, the economy." All this week, noon Eastern only on CNN.
WHITFIELD: All right. Presidential politics on to Indiana and North Carolina. The two states have the next Democratic primary contest, that would be May 6th. Hillary Clinton is in North Carolina today for a couple of speeches. Barack Obama is off the campaign trail today. Huddling with aides in Chicago. John McCain continues his weeklong tour of various areas hit hard by job losses. He is in New Orleans to visit the Ninth Ward and hold a town hall meeting. He has also campaigned this week in Kentucky, Selma, Alabama and Youngstown, Ohio.
A day before the Pennsylvania primary presidential candidates Barack Obama and Hillary Clinton began flooding the airwaves with negative ads. Well, find more on the candidates at cnnpolitics.com. Cnnpolitics.com is your source for everything political.
HARRIS: It is moving day for hundreds of children taken from that polygamist compound in Texas. They are headed to group homes, shelters and foster care. Our Susan Roesgen is following the case for us in San Angelo, Texas. Susan, good to see you. Good morning.
SUSAN ROESGEN, CNN CORRESPONDENT: Good morning, Tony. You know, there's still about 300 children in the San Angelo Coliseum here behind me, who have been there for almost three weeks now. And you can imagine that can't be the best situation for them. This is a coliseum designed for rock concerts, and rodeos, and hockey games. So, all of these children in there, waiting to find out what the next step will be. Now, the state of Texas says all the DNA testing has been done on those children and it is time to move them out to group homes.
Now, these are homes that are smaller, hopefully more intimate and more home-like situation for the children. The first 100 or so moved out on buses here, Tony, on Monday, bussed out to 16 different group homes all across the state of Texas, including as far away as Houston. That's about 500 miles away. Today we expect to see more of the children bussed out now. But the mothers of the very youngest children got a concession from the judge. Nursing mothers and there are 18 of those, will be allowed to stay with their children in whatever group home situation they might be in. And mothers of children two years old and younger will at least be accommodated someplace in the same town. The Child Protective Services Agency that is controlling this for the state of Texas that has temporary custody of these children may look like the bad guys to some but they say that trying to do the best they can. And they realize it is going to be tough for the children, too.
(BEGIN VIDEO CLIP)
DARRELL AZAR, CP'S SPOKESMAN: I think any time a child has to be separated from their parents, there is a certain level of trauma. We have found in our case work throughout the years that no matter how badly a child is abused, they always want to be with their parents. Unfortunately, that's not always in their best interest.
(END VIDEO CLIP)
ROESGEN: Tony, in the last hour, Fredricka and I were talking about what the psychology, the psyche of these children might be like, how they might have been initially excited by this big adventure and how they might be feeling really badly now, being separated from their mothers and away from the ranch. There are so many things about this culture, this compound, this group, that we in the outside wouldn't understand.
For instance, today, Tony, I'm wearing red which does not mean much. It is a good TV color. But Warren Jeffs, the prophet, who has controlled this ranch, told everybody that red was the devil's color. So, that's why the children would be maybe afraid of red toys or other children wearing the color red. So these children are going to get some psychological counseling in the group homes. They are not going to go to school in public schools. They are going to be schooled in the group homes. But even something as simple as what color other children are wearing, that might, you know, concern the children. So, they have a lot of adjusting to do.
HARRIS: And would leave them to be hesitant in approach someone or talking to someone who happened to be wearing red. Susan, just another quick question. Are there any new developments with the case itself?
ROESGEN: Yes, there is, Tony. Rosetta Swinton, this 33-year-old woman in Colorado who Texas Rangers suspect may have made the call to the ranch that set off this whole investigation, a woman that has seemingly nothing to do with this ranch here in Texas. They have since determined that one of the phone numbers that is associated with this woman out in Texas was the phone number used to make the call for help by someone claiming to be a 16-year-old abused wife and mother at the ranch. So, they connected this woman, this 33-year-old woman out in Colorado Springs, Colorado with that phone call. But Texas ranger say she is still just a person of interest. She has not been arrested.
HARRIS: OK. Susan Roesgen for us in San Angelo, Texas. Susan, great to see you. Thank you.
WHITFIELD: All right. Was it a nuclear sight in Syria? Now you see it. Now you don't. Bombed by Israel. Find out who the U.S. says helped build it. That story straight ahead in the NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Welcome back everyone to the CNN NEWSROOM. I'm Tony Harris. The storms hit home. And apparent tornado rips up a Texas neighborhood. That's ripped up. Will more extreme weather strike today? We're watching the conditions throughout the day right here in the NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Several arrests in the robbery and shooting of a bank teller, pregnant with twins. We told you about the story right here in the NEWSROOM yesterday. The arrest actually happened overnight. In Indianapolis, five people are now in custody. Four face charges of conspiracy to commit robbery. What a horrible story this was for us. Yesterday, the man police believe shot the bank employee is still on the run. Police say the woman is in critical condition. Her unborn twins are doing OK.
WHITFIELD: Top secret nuclear evidence reveal this hour to members of Congress. U.S. intelligence trying to support claims Syria was building a nuclear reactor at this site with North Korea's help. Israel bombed the suspected facility last September. Let's check in with our Ben Wedeman in Jerusalem. Israeli officials, Ben, would rather not have this matter up front and a public view but here it is.
BEN WEDEMAN, CNN CORRESPONDENT: Yes, Fredricka. What they are afraid of is that these hearings on Capitol Hill are going to expose some of their intelligence collection methods. They are also worried that a very public airing of this evidence against Syria is going to push the Syrian President Bashar Al-Assad to take revenge on Israel for that attack last September. So Israeli officials we have spoke to today said they have no comment on these hearings. They may have a comment afterwards but for the time being, and really since last September, they have had almost nothing to say about this subject. This is in a country where usual usually they have a lot to say just about everything. Fredricka.
WHITFIELD: And so what is it hat's this doing, if anything, to the Israeli-Syrian peace talks potential?
WEDEMAN: Ironically, it seems to have almost no impact whatsoever. In fact, we heard earlier in the week that the Israeli Prime Minister Ehud Olmert expressed to Syrian officials through Turkish intermediaries the willingness of Israel to return the Golan Heights which Israel has occupied since June of 1967 in exchange for a peace agreement with Syria. And we heard the Syrian president in a television - rather a newspaper interview published today saying that there have been secret contacts since March of 2007. Between Israel and Syria over this very subject. It appears that there are almost on two completely different tracks that the Syrians and the Israelis, as I said, through the Turks are, in fact, are changing notes on the possibility of peace between the two countries. Fredricka.
WHITFIELD: All right. Ben Wedeman, thanks so much for that update. Tony.
HARRIS: Boy, how interesting is that?
The cost now of commuting. Gerri Willis has tips to put the brakes on soaring gas prices right here on the NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: We get you to the New York Stock Exchange now for a look at the big board. Inside the first hour of the trading day here and not a whole lot going on. The Dow down 37. Let's put the brakes on this movement in this direction. But the Dow down 38 points. OK. That's a little better. And the Nasdaq down 11 points, ten points, again inside the first hour of the trading day. Susan Lisovicz gives us a market wrap, coming up in just a couple of minutes right here in the NEWSROOM.
WHITFIELD: By the day, by the mile, your commute is getting more expensive. But you can trim those costs with a few tips. Gerri is going to delve into that. But first, Gerri, before we talk about our commute let's talk about our property, especially for those who have been watching the new home sales market and it's not good. And in fact, this is so depressing. The numbers have really plunged haven't they?
GERRI WILLIS, PERSONAL FINANCE EDITOR: Absolutely. You know, Fredricka, we have a report out this morning from the Commerce Department. They say new home sales for the month of March are down 8.5 percent. Now that is the lowest level in more than 16 years. As I said the numbers are just out from the Commerce Department. Devil in the details here. You know, it's March, this is the beginning of the home sales season. This is exactly when you would think we would see some kind of improvement. It is not happening, not yet. What's more, you have seen those homebuilders already cut prices. Pretty dramatically, too. They are down 13 percent year over year. So, the market, Fred, still struggling here.
WHITFIELD: Boy, it's remarkable. The lowest in 16 1/2 years.
WILLIS: Can I give you the one ray of sun, one little ray of sun here...
WHITFIELD: What is that?
WILLIS: ...is that inventories for new homes declining slightly here. So, that has to happen before prices can improve.
WHITFIELD: I see. All right. Let's talk about the commute because it is going to be hard to uplift me on this one as well. Because it is costing everybody more.
WILLIS: Yes.
WHITFIELD: But if we have to try and find ways to cut corners, how do we best investigate, you know, how to do that what are our alternatives out there? WILLIS: Well, there are alternatives to lots of folks. You know how much you're spending to commute back and forth to work. But do you know how much you save by taking mass transit instead. There are calculators on the web. Commuterchoice.com has one that lets you see what the cost benefit would be if you hop the train or the bus.
WHITFIELD: All right. So say, I don't live near, in our case here, the (Martha)or a subway. I got to drive. Then what?
WILLIS: Well, then getting most out your gas tank is a priority. And here is how to do it. First off, simply maintain your car. One of the most important things you can do is make sure that your tires are properly inflated. According to tests done by edmonds.com driving with tires that are under inflated by just 25 percent caused the loss of fuel economy on average of four percent. If you have a roof rack that you are not using, take it down. It can cause fuel loss of 1 percent. And if you're carrying around a lot of extra weight in the trunk, get rid of that, too.
That heavy load can add to your gas bill. Get rid of those golf clubs. If both spouses drive to work in separate cars use the more fuel efficient one for the longest commute. All these little things don't sound like a lot but when you add them all up they really are.
WHITFIELD: It makes a big difference. And then you need to do a little research, too. Because sometimes your employer can help you out. Sometimes there is an incentive that your employer will give to get on mass transit. Right?
WILLIS: Well, you know, look, the federal and most state governments offer big tax breaks for commuters. They want you to do this. If your employer offers, day a flexible spending plan for transportation, you definitely want to take advantage of that. The money you contribute to the fund lowers your taxable income so you will be shielding money from Uncle Sam. That's legally. That's always a good thing. Ask your employer about this perk.
WHITFIELD: Car-pooling. How about that?
WILLIS: I know, people hate this word, right? You don't want to do it.
WHITFIELD: Well, it only works if other folks have the same hours that you do. You know, at your workplace and sometimes those hours can just vary that it still doesn't work out.
WILLIS: And they have to be nice.
WHITFIELD: Oh, gosh. Yes.
WILLIS: All right.
WHITFIELD: It could be a long drive sometimes.
WILLIS: Yes, that's right. So, OK, if you are interested in this, pair up with a fellow commuter to share ride. The place to go erideshare.com, to find fellow travelers who are looking to share rides. You can also check out commuterchoice.com or your state's department of transportation for more info. Fine fellows like you though is what you want to do. Right?
WHITFIELD: Yes. and if you want to try and shorten your commute, if there's a way. I mean, I guess find a better route in which to get to work. You need to look into that as well. Is there help out there for that?
WILLIS: Well, if there's another way to save some money. Look if you decide to go to public transportation, you should call your auto insurer right way. You'll generally get a low mileage discount if you drive fewer than 40 miles per day. You may also be able to cut down your mileage by pitching the idea of telecommuting, one or two days a week to your boss. That's not a bad idea.
WHITFIELD: That's nice.
WILLIS: You know, we're going to have more on that next week because that appeals to a lot of us here. And of course, if you have any questions, send them to us at toptips@CNN.com. We answer them right here every Friday.
WHITFIELD: Perfecto. All right. Gerri Willis, thanks so much. We appreciate it.
WILLIS: My pleasure.
WHITFIELD: All right, welcome back to the CNN NEWSROOM. Bottom of the hour 10:00 Eastern hour. I'm Fredricka Whitfield.
HARRIS: And good morning, everyone. I'm Tony Harris. Spring weather, extreme and unexpected, pretty dramatic video for you. Widespread damage from and apparent tornado, possibly touching down here in the community of Crowley. That's near Dallas.
It formed from savage thunderstorms that pounded northern and western Texas. That's a home that's gone. Trees down. So far, no worry. Here's the good news of any severe injuries. No injuries at all to report at this point.
WHITFIELD: I think we should.
You know, Rob, we keep saying apparent tornado because it's too early to discern because the experts have to get on the ground, Right? To really look at the pattern of the debris spread.
MARCIANO: Yes, and here's the thing, we didn't have a spotted tornado in this area. At this time, we had a tornado reported just upstream or just down a couple of counties westward and so there a tornado about an hour before that. Here's Crawley but an hour before that, there was a tornado here. And it was definitely heading this way. There wasn't an official tornado warning. There was a severe thunderstorm warning for potentially having winds in excess of 70 miles an hour posted for this. So, I mean, those could be winds. You know, you can get down very easily over 100 miles an hour just for, you know, straight line wind coming down from the upper levels.
But National Weather Service will get it out there and they're probably out there right now and they're going to check it out.
This is the radar from last night. 8:30 yesterday evening. Here's Dallas-Ft. Worth. Crowley right there. That purple, that's intense rain or probably a hail core. And some of these (INAUDIBLE) had the possibility or had reports of putting hail down, golf ball, tennis ball sized hail. Even baseball sized hail. And this sort of signature -- when this things just blew through south of Dallas, it really kind of exploded. So we'll see. I mean that's nasty, nasty video that's coming in from that area.
Now everything moving from west to east. That's true. But this time of year when you get clearing out, that strong spring sun, you get a little another nudge of energy coming out of the Rockies is what we have today. That kind of starts everything up over again. So even though we're watching these batch of thunderstorms, which is just the weakening part of what happened last night, moving east towards Portsmouth, some heavy rain moved through Springfield, we got flash flood warnings posted there.
You're about to get some showers and thunderstorms that will move through St. Louis and across the Mississippi. Same deal for Memphis. But these shouldn't be too, too bad. I think the bulk of the nasty weather this afternoon will be kind of back where it was last night, except further to the north. So it'll be north of Oklahoma City, although that's in a slight risk area. This red area is the moderate risk area and will probably see some thunderstorms that likely will produce tornadoes. Some of which could be big ones. Some of which could do probably some damage, so.
WHITFIELD: Yes. All right. Good warning.
MARCIANO: This is the time of year. Yes.
WHITFIELD: Which means, folks, you should start thinking about where in your house, if you're going to be in your home.
HARRIS: Exactly.
WHITFIELD: Where in your house is the safest place in which to go.
MARCIANO: And what's amazing after seeing that video, you mentioned that, Fred, these people who live in this part of the world, they know what they're doing. I mean they know when to take cover.
WHITFIELD: They do.
MARCIANO: To see that sort of destruction and not have serious injury or fatalities is really a testament to...
HARRIS: Yes. Yes.
MARCIANO: ...the media and the folks who just know when to get out of the way.
WHITFIELD: Yes. It is indeed.
All right. Rob, thank you.
MARCIANO: OK, guys.
HARRIS: You know it is the nation's most popular seafood, but is there a dark side to imported shrimp Americans don't see? A special investigation's unit report ahead in the NEWSROOM.
(COMMERCIAL BREAK)
WHITFIELD: A food crisis all the way across the world. A ripple of concern as close as your corner grocery shelf. Across much of the U.S., some Costco and Sam's Clubs are limiting how much rice you can buy today. The limit, more than you likely want, 80 pounds per shopper. Some people and small business however are stocking up for two reasons. One, U.S. rice prices have nearly doubled in the past few months. And more ominously food shortages have ignited panic and rioting overseas.
Rice experts say poor crops and rising demand from developing countries have strained supplies. But there is no global shortage. By the way, earlier today U.S. rice futures hit an all-time high.
HARRIS: Another country reeling from a food crisis, Peru. The developing South American country is looking for ways to ease the hardships.
CNN chief medical correspondent Dr. Sanjay Gupta is in Lima with a closer look.
(BEGIN VIDEOTAPE)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (on camera): Last night we went to some of the poorest parts of Peru, of Lima. And what we saw there is the government buying night, in the middle of the night, was actually secretly putting together these food bags and then going to the small villages, knocking on people's doors and handing them the food.
They recognize that it has become very difficult for people to actually buy food here. They simply couldn't afford what was in that bag. Some rice, some beans, some vegetable oil, six cans of anchovies. That's what they're getting and it's expected to sustain them for quite some time.
What was also interesting, there's a lot of suspicion of the army here as well. In the past the army used to go door-to-door in order to find people and take them off to jail. So now when they come knocking on the doors people oftentimes would not answer. This is a small band-aid but this is something that's happening here in Lima to try and address this food shortage.
The potato is something else that they grow here a lot and that's something they distribute often.
There are small measures taking place. We're going to have much more on how it's working.
Dr. Sanjay Gupta, CNN, Lima.
(END VIDEOTAPE)
HARRIS: Americans love shrimp. On average, we eat about three pounds every year. But now allegations of slavery within the industry.
CNN's Zain Verjee is taking a look for the special investigations unit and she joins us now from Washington.
Zain, good to see you. What have you found?
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Well, Tony, if you order shrimp for dinner or you buy it from the grocery store, you're going to need to know this. A new report says that the shrimp you're eating could be linked to slave labor half a world away. Now it's imported mostly from Thailand and Bangladesh.
A group called the Solitary Center, which is allied with the AFL- CIO, spent three years investigating. They found a growing world appetite for shrimp especially here in the U.S. And Solidarity found that as the shrimp industries have boomed in those countries, the workers who actually process the shrimp have become exploited. The report says this, that workers endure forced labor, beatings, sexual abuse, low wages, long hours. In Thailand many workers, too, are trafficked from places like Burma and they're forced to work in these really appalling conditions.
Now those findings are supported by the U.S. State Department whose experts on human trafficking describe this conversation with a rescue worker.
(BEGIN VIDEO CLIP)
MARK LAGON, AMBASSADOR-AT-LARGE: I was stunned to hear the details. (INAUDIBLE) was caught, dragged back and beaten when she tried to escape this labor camp. She was refused food and water. And she had her head shaved to be made an example to other workers who would try and rebel against their oppressors.
All of this was designed to demonstrate to her colleagues what would happen if they dared to escape. This is forced labor. It can't be described in any other way except as slavery.
(END VIDEO CLIP)
VERJEE: The report says that the average American eats nearly three pounds of shrimp a year. You mentioned that, Tony. But 80 percent of that is imported. The U.S. imports something like $1.5 billion worth of shrimp a year. So it's really big business here in the U.S. CNN's Special Investigation Unit will have a full report today on "ISSUE #1."
HARRIS: OK. So Zain, the 80 percent that is imported into the United States, is all of that shrimp we eat being processed by abused workers?
VERJEE: Well, the report says not all of the shrimp imports come from these problem plants. So some of the shrimp you're eating is OK and untainted that way. But they say that they did trace the shrimp cargo to some pretty well-known U.S. retailers from Thai plants that have some really substandard working conditions. So what this report is saying they want to see higher standards and more scrutiny of the imports.
HARRIS: And one more quick one here, Zain. Is the group or the State Department calling for an embargo at this point?
VERJEE: No, they're not. What they're saying, though, is that you, the consumer, has a lot of power. The Solidarity Center is saying that it's publishing this report really to raise awareness, kind of like the report on how diamonds often fund wars.
HARRIS: Yes. Yes.
VERJEE: Right? And they cause consumers then to question where their jewelry was coming from. So this is the same sort of objective.
HARRIS: Got you.
All right. Our State Department correspondent Zain Verjee for us.
Zain, great to see you. Thank you.
WHITFIELD: Pennsylvania produces a big payday. Hillary Clinton cashes in. The numbers in the NEWSROOM.
(COMMERCIAL BREAK)
WHITFIELD: Hillary Clinton's campaign chest fills up after her Pennsylvania primary win. But the candidate still has her hand out.
Here's CNN's Randi Kaye.
(BEGIN VIDEOTAPE)
RANDI KAYE, CNN CORRESPONDENT (voice over): The great Democratic divide may ultimately come down to the dollar. Barack Obama has outraised Hillary Clinton by tens of millions. But fresh off her victory in Pennsylvania she's playing catch-up.
TERRY MCAULIFFE, CLINTON CAMPAIGN MANAGER: We raised $10 million through the Internet. We have had the biggest day we've ever had in the history of our campaign. $60,000 brand-new donors.
KAYE: $10 million in less than 24 hours. Big money for a candidate who two months ago couldn't afford to pay staffers and loaned her campaign $5 million out of her own pocket.
Is she broke?
LARRY SABATO, CENTER FOR POLITICS, UVA: There is no such thing as being broke when you have a brand name in politics. And the Clinton name is one of the best brand names in American politics.
KAYE: Obama outspent Clinton three to one in Pennsylvania and she still stole a double-digit victory. Even so the Obama campaign says he raised millions today, too, and it's not concerned about Clinton's cash.
SEN. CLAIR MCCASKILL, OBAMA CAMPAIGN CO-CHMN.: I don't think that either candidate is going to lose this campaign or win this campaign on the basis of donations. They're going to win it or lose it based on who the American people and who the Democrats think can deliver the most effective message of change.
KAYE: Here are the numbers. At the end of March, Clinton had just $8 million to spend on primaries. Obama, six times that, more than $42 million. Both have debt. Obama, about $660,000 worth, Clinton a whopping $10 million.
And with another must-win around the corner in Indiana, she needs cash. She's not shy about asking for it during her victory speech...
SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: We can only keep winning if we can keep competing with an opponent who outspends us so massively.
KAYE: ...and in Indianapolis.
CLINTON: I would really welcome a contribution because we are being outspent.
KAYE (on camera): Does Hillary Clinton need money to win Indiana?
JENNIFER DONAHUE, NEW HAMPSHIRE INST. OF POLITICS: There's no doubt about it. She needs a lot of cash on hand to run a good, strong ground operation to get out the vote.
KAYE (voice over): Our experts agree Clinton got into the game of grassroots fundraising too late. Obama raised millions through small donations. Clinton went for the big dog.
(On camera): That seems to have changed. Judging from her Web site she, too, is aggressively pursuing smaller donations. Until today if you logged on to HillaryClinton.com you'd be directed to the campaign's main page. Well, now, you're directed here, to a donation page asking for a contribution of just $5.
(Voice over): If the money train stops short might Hillary Clinton spend more of her own money again? MCAULIFFE: Well, I haven't asked her that yet. You know, everything is always on the table. I never take anything off the table. This is an important race for president.
KAYE: Especially not when it may be the last lifeline for a very financially strapped campaign.
Randi Kaye, CNN, New York.
(END VIDEOTAPE)
WHITFIELD: And it's not what he said. It's what they wore that has people buzzing. Abercrombie & Fitch guys behind Barack Obama.
HARRIS: OK. A merger between Delta and Northwest remains up in the air. Now the two companies' CEOs are defending their plan on Capitol Hill.
Susan Lisovicz -- there she is. She's on the floor of the New York Stock Exchange with details.
Susan, good morning.
SUSAN LISOVICZ, CNN CORRESPONDENT: Good morning. You know, you name this type of merger. Usually one of the driving forces, Tony, is to cut costs. And never has it been more critical to do just that than in the airline business.
Just yesterday, we were telling you that Delta and Northwest combined with $10 billion just in the first quarter of the year. And of course, it comes down to the rising cost of jet fuel. But just as the airlines want to cut costs and do mergers like this, consumers are opposed. A merger like Delta/Northwest would create one less airline, perhaps fewer choices, and ultimately higher fairs because jet fuel is still going up.
Congressman Jim Oberstar says that this is, quote, "the worst development in the history of aviation since deregulation." So there's going to be a lot of heat on Capitol Hill today.
Also want to tell you about a different kind of deal. This is a different kind of fuel, if you will. Fast food. There is perhaps a new owner for Wendy's. The owner of Arby's says it's buying Wendy's in a deal worth more than $2 billion. Wendy's board rejected at least two earlier offers by the company. Triarc Companies is the would-be buyer. It's owned by billionaire investor Nelson Peltz.
The daughter of founder Dave Thomas is upset. She said if her father were alive he would not be amused. And I think everybody can remember Dave Thomas...
HARRIS: Oh yes.
LISOVICZ: ...through those humorous ad campaigns, Tony. He really did have a very good sense of humor. And...
HARRIS: That's right.
LISOVICZ: So that's an interesting story to watch.
Also want to switch over to beverages. Wake up and smell the sell-off for Starbucks. Its shares tumbling, 11 percent or 13 percent, actually, the last time I looked. Weak quarterly sales. An unexpected drop in its core U.S. markets. California and Florida are key, particularly they've been hard hit by the housing recession.
HARRIS: $4 gas, come on.
LISOVICZ: No kidding. And it's...
WHITFIELD: $4 (INAUDIBLE).
LISOVICZ: That's right.
HARRIS: Right.
LISOVICZ: That's right. Which do you need more? The CEO, Howard Schultz, who is the guy who really made Starbucks what it is, he says that this is the worst economic climate in the company's 37- year history. And just to add fuel to the fire, new home sales, we got it out at the top of the hour, 16-year low, down 8.5 percent from February. Results are worse than expected.
Let me tell you something good.
HARRIS: OK.
LISOVICZ: Ford, Ford swung to a profit. $100 million, it's a profit. Some would say that's progress. I think so. It's going in the right direction.
HARRIS: Absolutely.
LISOVICZ: What's going in the opposite direction right now is the blue chips, the Dow Industrials down 47 points. The NASDAQ is down 16. Oil prices are down nearly a buck. I'll leave it at that.
HARRIS: Yes. We'll have to...
LISOVICZ: Tony and Fred.
HARRIS: We'll have to find someone from Ford, Susan, to take us to lunch today.
LISOVICZ: That's exactly right. Celebrating in motor city.
HARRIS: Yes.
WHITFIELD: The only ones who can afford it right now.
HARRIS: Exactly. All right. See you next hour, Susan.
WHITFIELD: See you the next hour. Big, beautiful and talented.
(BEGIN VIDEO CLIP)
CHLOE MARSHALL, MISS ENGLAND FINALIST, MISS SURREY: I'll do waxing. I love waxing. So I'll do that. You know what waxing is, right?
ALPHONSO VAN MARSH (on camera): Well, I do. I do.
(END VIDEO CLIP)
WHITFIELD: Yes, she said waxing. The talent. A beauty pageant squeezes in a plus-sized contestant.
(COMMERCIAL BREAK)
HARRIS: Hey, we haven't told you about the podcast recently. I don't think we have. We love the podcasting.
WHITFIELD: Not just one day.
HARRIS: You enjoy the podcast. We know you do. We see the number of people who log in and watch the podcast, it's growing by leaps and bounds every day, Fred. So here's what you do. You go to CNN.com and you log on there, and download the CNN NEWSROOM daily podcast. And it's available -- say hi to everyone, Fred.
WHITFIELD: Hello.
HARRIS: There's Robert right there. And you download that thing. It's terrific. We put different stories on the podcast. Certainly can't make the big show when we're following breaking news the way we must here in the NEWSROOM.
So what to do, download it, once again, CNN.com. It is available to you 24/7 right there on your iPod.
WHITFIELD: That's right.
Well, she is a standout beauty queen contestant and she is turning heads with her looks.
CNN's Alphonso Van Marsh is the lucky man.
(BEGIN VIDEOTAPE)
MARSH (voice over): Weighing in at 176 pounds, Chloe Marshall could be England's next beauty queen. Shot in a bikini by "Hello" magazine, the 17-year-old says she never expected to compete in the Miss England finals. She earned a slot in July's national contest after winning a local beauty pageant.
MARSHALL: I wanted to show that, you know, big is (INAUDIBLE). And you never hear of size 16, plus size girl, going into a competition. MARSH: In a pageant and modeling industry often criticized for objectifying women Chloe is breaking the stereotype of the size zero catwalk queen.
(On camera): Having won a reasonable pageant like this one, Chloe Marshall will become the first plus-sized woman to compete in the Miss England finals.
MARSHALL: (INAUDIBLE) needs to change for the better, not the worse. So I think I'm happy that they've got someone in the competition that is very confident and has a different look to any of the other girls.
MARSH (voice over): This teen's confidence boosted by the spoils of her regional victory like a custom fit Miss England wardrobe.
ERIC WAY, FASHION DESIGNER, MISS WORLD JUDGE: I was quite surprised that she was actually lovely and tall and in proportion and could carry off the weight.
MARSH: Carrying off the Miss England talent competition may be a different story. Marshall's banking on her beauty therapist skills.
(On camera): What are you going do?
MARSHALL: I'll do waxing. I love waxing. So I'll do that. You know what waxing is, right?
MARSH: Well, I do. I do.
(Voice over): In a country where the hit video "Big Girl" was filmed the public is supporting Chloe but with some reservation.
SAMANTHA DEL GRECO, PAGEANT JUDGE/FORMER WINNER: I think it would be -- I don't (INAUDIBLE) harsh, they're not being harsh, but I'm just saying that I think she'll really have a hard time because of that (INAUDIBLE), and I think that maybe the girls will give her a hard time.
MARSH: Hard time or not, Chloe says she's going through with it to give other curvy girls hope and to promote what she calls a healthy and realistic body image.
Alphonso Van Marsh, CNN, Bath, England.
(END VIDEOTAPE)
HARRIS: All right. Listen to the roar.
Tornadoes, hail the size of baseballs, flooding rains, severe forecast, in the NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: And good morning again, everyone. You're informed with CNN. I'm Tony Harris. WHITFIELD: And I'm Fredricka Whitfield, in for Heidi Collins.
HARRIS: Developments keep coming in to the CNN NEWSROOM on this Thursday, the 24th of April. Here's what's on the rundown.
WHITFIELD: An apparent tornado tearing apart homes. Another day of extreme weather forecast for the plains.
HARRIS: Israel bombs. Did North Korea help build. The Bush administration shows Congress secret nuclear evidence. We're live from Jerusalem.
WHITFIELD: A run on rice.
