Food and feed prices going up

Chicago or other board wheat prices going up 50% doesn't mean farmgate price has gone up 50%. In most areas I watch, the basis has dropped by $0.70-$1.00 or more per bushel over that same period.

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The internet - fueling paranoia and misinformation since 1873.

Wolf Mom has her priorities right.
Watch those chocolate prices!

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www.thewefthandedweaver.com

It is investors trying to protect themselves from the Fed's printing press; physical goods. Not speculation. Too many dollars chasing too few goods and services. Look for everything to increase in price for the next ten years as the .gov tries to monetize the debt. Hopefully it will not get too out of hand and we still have a dollar at the end of this.

Once or so a month for years, I read on the internet forums that the price of food is about to go up.

I still haven't seen it happen to often or when it does it isnt by very much, and almost always effects brand name stuff more than off brands.

A lot of hype and worry for nothing if you ask me.

I bought a package of 6 chocolate bars last week for 50 cents. At a price of less than 10 cents each I'll buy more. I would have purchased more at the time of the initial purchase had I know they were good, no waxy, etc.

Walmart--do you have more of them at that price? Guess I need to go shopping.

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My family---bEI

"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."

Duh............... That's the homestead spirit, isn't it? Then we don't have to beat our keyboards to death with worry talk and doomsday thoughts.

(What's in your pantry?)(Or was it wallet?)

geo

I am not worried, just giving people a heads up on what they might want to stock the most in the next few weeks. I have a years supply of stuff here for us, it will hurt me most for the bakery if the flour jumps again. I go through 50lbs of flour a week here so I can only stock so much.

i don't use any of the products that you mentioned that are going up..except occasionally some tea, but i can dry my own herbs for that..and i have black and green and other teas stocked up so no worries.

nice to not use carbs..except a few raw fruits and veggies..

Any farmer can sell his grain on the futures market.

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Flaming Xtian
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Mahatma Gandhi


Libertarindependent

But you have to deliver it locally unless you take on offsetting futures position (in which case you aren't actually selling grain anymore, you're speculating), which is where the basis comes in. So for example, locally I could sell wheat last spring for $4 on the futures market give or take a few cents. The basis at that time was 0, so I would actually have gotten $4. Now it's $6 on the board but the basis is -$1.05 so I get $4.95 (forgive a little rounding on the $4 and the $6 but they're both pretty close)

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All commidities are going to significantly rise over the next few year and probably for the next 10.

The fed is now buying its own paper and the Chinese, Japanese, and the Middle East don't want anymore T Bills and are looking to unload what they have. The will purchase commodities. All goods will see significant price increases (at least in terms of US dollars).

I really hope I'm full of it but I'm not banking on it.

Well Dale, the farmer can also forward contract the crop, then he sells to the speculator who bets on the price going up.

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Flaming Xtian
I like your Christ, I do not like your Christians. Your Christians are so unlike your Christ.
Mahatma Gandhi


Libertarindependent

But the basis is still factored in. You can buy and sell speculatively, shuffling paper, at board prices all you want, but you can't sell a crop to deliver without considering the basis. You can contract with the basis locked in on the front end, or you can go price only and hope the basis swings in your favour, but you can't ignore the local basis if you're producing the crop. And no matter that the board might tell you there's enough change in supply and demand to merit a 50% increase, the local buyers are telling us they don't see it quite that way.

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The internet - fueling paranoia and misinformation since 1873.

Hmmm... if commodities experience an increase in value, then maybe US agriculture will experience a renaissance. I'd sure like to see the farm lands around the Valley that were sold a decade ago to developers but is now sitting fallow go back into crop production. There's an awful lot of land here that is just sitting because there is no market for new homes and shopping malls.

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Is there enough water available for farming to make a comeback?

Were they made in China or Mexico?

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A year or so ago I saw a map with an article about global warming. It indicated that the US agriculture would move from one part of the country to another in response to changing weather patterns. I've been looking for that darned map and can't find it.

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Ever tried? Ever failed? No Matter, try again, fail again. Fail better.

- Samuel Beckett