Food and feed prices going up

[Patt]

I have just read a series of articles saying wheat, corn, soybeans, sugar, coffee and tea are all rising. So you might want to stock up now if you can.

I do find the fact that wheat has jumped 50% a little frustrating since it is based on speculation. Looks like investors are about to run up our flour and bread prices like they did our gasoline a couple of years ago.

I am all for farmers being able to make a better profit this year by being able to export more but I don't like the prices being so volatile because investors are looking to make a profit somewhere and they are speculating on food.

[oneokie]

Originally Posted by Patt

I have just read a series of articles saying wheat, corn, soybeans, sugar, coffee and tea are all rising. So you might want to stock up now if you can.

I do find the fact that wheat has jumped 50% a little frustrating since it is based on speculation. Looks like investors are about to run up our flour and bread prices like they did our gasoline a couple of years ago.

I am all for farmers being able to make a better profit this year by being able to export more but I don't like the prices being so volatile because investors are looking to make a profit somewhere and they are speculating on food.

You forgot the electricty crisis in California a few years ago.

[Tracy Rimmer]

Originally Posted by Patt

I am all for farmers being able to make a better profit this year by being able to export more but I don't like the prices being so volatile because investors are looking to make a profit somewhere and they are speculating on food.

It's not the farmers who will be making a better profit.

[Patt]

The ones they interviewed said they would be. But most of it will go to the speculators and middle men no doubt.

[sammyd]

It's not the farmers who will be making a better profit.

In this case it will be since the price discussed is the basic commodity price, not the retail price the consumer pays.
Many things are happening to drive the price. Not too perfect conditions in parts of the corn belt, Russia stopping wheat exports, high cattle prices......It's not all speculation

[tinknal]

Actually I think an extended period of food insecurity is just what we need to readjust our priorities.

[arabian knight]

For sure it won't be the farmers.
There is way more beans then last years harvest.
Way More Corn has been forecast to be harvested this year then last year.
How in the world can prices go up that will make ALL prices go down including foods prices those that have soy, and corn in them.
Heck just look how low gas prices are today. Crude has not been this low in what a Year????
71 bucks a barrel and still going down. Price on the pumps today was $2.55 in my area.
All that points to prices going down not up.
The glass is Half Full,,, Not Half empty, like some go around saying.

[Ramblin Wreck]

Originally Posted by sammyd

Many things are happening to drive the price. Not too perfect conditions in parts of the corn belt, Russia stopping wheat exports......It's not all speculation

The massive fires in Russia destroyed much of their wheat crop. This is going to cause a lot of downstream problems, possibly mass starvation in places like Pakistan.

[tinknal]

AK, corn and beans is good in MN and WI but much of the grain belt has been hit by drought and excessive heat this year. Good year to be a farmer in the upper mid-west.

[arabian knight]

The national harvest forecast I just heard last week and every thing was up from last year.

[tinknal]

Originally Posted by arabian knight

The national harvest forecast I just heard last week and every thing was up from last year.

Well, last year was a bad year. The crop failures in Russia will increase international demand. I've heard that Russia has suspended all wheat exports.

[tinknal]

CHICAGO (Dow Jones)--Corn prices are poised to rise Monday on projections the U.S. crop may be smaller than previously expected.

Market participants are predicting the U.S. Department of Agriculture will have to cut its yield forecast because of heat and excessive rain in certain areas. Professional Farmers of America, an industry group, on Friday pegged the average yield at 164.1 bushels per acre after wrapping up a Midwest crop tour, below USDA's estimate of 165 bushels.

"On the tour, we observed several cases of nitrogen deficiency, uneven growth, and small ears in much of the Illinois corn crop," said Hussein Allidina, head of commodity research at Morgan Stanley.

It wouldn't be surprising to see USDA lower its yield estimate one to two bushels per acre, said Jerry Gidel, analyst for North America Risk Management Services, a brokerage in Chicago. The government is due to update its crop forecast Sept. 10.

http://www.cattlenetwork.com/CBOT-Co...N-LATEST_NEWS_

[tinknal]

By William L. Watts

LONDON (MarketWatch) -- The U.S. Department of Agriculture on Thursday cut its world wheat production estimate and its estimate of ending wheat stocks, reflecting in part the impact of a Russian drought. USDA estimated world wheat production at 645.7 million metric tons, down 2.3% from its July estimate. USDA estimated wheat stocks at the end of the 2010-11 crop year would total 174.8 million metric tons, down 6.6% from its July forecast. World wheat production last year was estimated at 680.3 million metric tons, with 2009-10 ending stocks of 194 million metric tons. Wheat futures at the Chicago Board of Trade were higher, with the September contract up 17.25 cents on the day at $7.12 a bushel.

http://www.marketwatch.com/story/usd...ast-2010-08-12

[sgl42]

Originally Posted by Patt

I do find the fact that wheat has jumped 50% a little frustrating since it is based on speculation.

the fed has been creating massive amounts of new money to bail out wall street and all the toxic mortgages. inflation of the money supply (the original defn of inflation) will eventually show up in inflation in prices for goods and services. same amount of goods and services, but larger number of dollars chasing them = price inflation.

hussman of hussman funds thinks that the overall price level in the usa will double within the next 10 years, just from the newly created money for the wall street bailout.

the newly created money has to go somewhere. real estate bubble has burst, so the money isn't going to go there. tech bubble and stock market bubble burst in 2000, and stock market barely made it above 2000 levels in 2007. money won't be going there.

my guess is the money will show up in the prices of commodities, precious metals, and precious metals stocks.

--sgl

[Patt]

Well after watching what investors did with oil and how they ran our gas prices up to $4 a gallon not so long ago I would not be surprised if that is what they did SGL. Scary thought though!

[Wolf mom]

What about us chocolate lovers and the hedge fund speculation thats driving cocoa prices outta sight?

http://www.swissinfo.ch/eng/business...l?cid=23333180

[plowjockey]

Originally Posted by Tracy Rimmer

It's not the farmers who will be making a better profit.

At least in the U.S., the plight of the "poor old farmer", really has become folklore and not representative of the modern agriculture business.

Between massive farm subsidies, generous crop insurance and good crop prices, farmers who farm properly, are doing quite well, even though they will be the last to admit it.

For American farmers at least, to continue to act that way is just silly.

[Patt]

Originally Posted by Wolf mom

What about us chocolate lovers and the hedge fund speculation thats driving cocoa prices outta sight?

http://www.swissinfo.ch/eng/business...l?cid=23333180

That's just crazy. They honestly should not be allowed to speculate on food!

[arabian knight]

Well tell that to the pork belly board, Tell that to the Frozen Orange Juice commodities, tell that to the coffee comedies, tell that to a number of Commodities that are on the stock market, including all the Futures as well.
This is America at its best. The rest of the world does this as well. ever heard of the stock exchange, Nikkei Index..
It IS a Global Market, and that is good for America and the rest of the world.

[Oldcountryboy]

Besides the usual increase in world population which means more mouths to feed, the wheat and corn production is down due to China's flooding, and Russia's fire/droughts. From what I've read, it's only gonna get worse and worse every year as populations increasing every year and to make matters even worse is if the Global Warming continues.

Everybody better be learning to raise most all your foods and not rely on your income to buy it.