I completely agree. We were just wondering why lower prices of meats due to the drought haven't shown up in the supermarkets (See chart below). I expect beef prices to soar after this drought is over and ranchers stop reducing herd size.
Posted on 08/04/2011 2:07:19 PM PDT by Errant
Nothing gives better proof of a sure and certain, rapidly growing global food shortage than the simplest look at how commodity markets have been responding to the US debt crisis, the coming devaluation of the US dollar, and the merited exposure of Barack Obama as a loser. Stripping away the short covering, the dollar crisis, inflation fear and all the rest, we find that food prices are resisting a lot better than oil prices, to the rising likelihood of recession in the western world, and maybe also global economic recession.
If food products were "pure commodities", like oil basically is, like copper basically is, they should also tank on this recession outlook.
But that isn't happening. Prices, to be sure, are highly volatile but the fundamentals tell us why food prices are so resistant to recession fear. UN FAO food supply, demand and price data proves that global demand is high, but supply isnt. The result: food prices are rising even as most OECD countries, led by the US, the EU27 countries and Japan are either in recession, close to recession, or experiencing constantly falling economic growth and rising unemployment.
(Excerpt) Read more at marketoracle.co.uk ...
Their aims are simple: 80% of the world dead and the rest crawling like beasts. It is, unfortunately, the only context in which the actions of this regime - and others like it - make sense.
“Prices at LDS canneries show increase... According to the new price list from April 4th, many food staples have increased by more than 20% since the last price list came out just 3 months ago on January 3rd.”
http://www.freerepublic.com/focus/news/2706902/posts?page=24
This week’s grocery ads came out yesterday and there wasn’t even a loss leader much less any price to get excited about. There hasn’t been any great loss leader prices since who knows when for HEB groceries. I’ve been waiting for the beef prices to drop, but it hasn’t happened. I’m wondering if the butchers’ or the grocery stores are keeping the savings and not passing them down to the consumer.
Great article. Thank you.
The guy who owns HEB is an open borders type. With heightened sensitivity to the unnecessary presence of illegal aliens he’s been husbanding his resources by keeping his prices as high as possible ~ he might end up needing to hire Americans as he lays off Mexicans.
I found several words of wisdom. Especially the part about most countries eventually becoming net importers of food.
Wow, I've been wondering the same thing. It could be the increase in supply of beef due to drought just hasn't shown up in major chain prices or maybe they're filling up their storage facilities to smooth out future costs to industrial cannery buyers, restaurants and etc.
HEB’s prices are not high. They run a fine company.
As far as his politics, I know nothing about the man. I do know about his employees and his stores.
There are 2 “chain” operations in Texas that are fine organizations. HEB and United. Both do an excellent job.
That said, I have a local grocery store that I shop at. It is 10 miles from my home, is owned by a local family, has prices very competitive with the chain operations, a very good merchandise selection and has good promotions every week.
In spite of the worst drought in over 100 years here in Texas I cannot see the price inflation. And I shop for groceries every week.
There is some variability, but not widespread items.
I do have a large garden this year, but it has been a struggle. Our temperatures have been over 100 degrees daily for 2 months. Today it was 109 degrees. And it is forecast to be 106 for the next 4 days.
We have had 1 inch of rain here since last October. Nothing is living except what is irrigated. My father and uncle sold all their cattle for the 2nd time in my father’s lifetime. We simply will not have winter grazing to feed them. I shutter to think what they will cost to replace.
The price of pretty much everything follows the price of oil — food is particularly strongly linked. As food prices rise, other sales will slow down, because ya gotta eat, and that means at home, not in restaurants.
The U.S.weather will effect beef, produce. With all of the Droughts and tornadoes.
I completely agree. We were just wondering why lower prices of meats due to the drought haven't shown up in the supermarkets (See chart below). I expect beef prices to soar after this drought is over and ranchers stop reducing herd size.
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