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ANALYSIS-Grain price rise may fuel Mideast, Europe unrest
Thompson Reuters Foundation ^ | 11 Aug 2010 10:27:35 GMT | Source: Reuters

Posted on 08/12/2010 6:31:43 AM PDT by Texas Fossil

LONDON, Aug 11 (Reuters) - Rising grain prices from Russia's drought and fires will pressure populations already hit by the financial crisis and could stoke unrest -- particularly in the Middle East, North Africa and parts of Europe.

Wheat prices have risen by nearly 70 percent since June after Russia suffered its worst drought in 130 years and are at their highest since 2008, when the last major food price rally sparked protests and riots in a string of emerging nations.

(Excerpt) Read more at alertnet.org ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: grain; prices; rise; wheat
Food is a sensitive issue for all nations. (We take it for granted here because of our ability to produce) In dictatorial countries it is a much more serious situation.

Our current "leadership" has taken steps to put us in the position for the "ruler" to use food as a subjection tool Note HR 2749 passed by Congress last year. I refer to it as the FDA takeover of food production. Of course the spin on the bill is that it is about "food safety" but it is in fact about taking control of U.S. food production, to the point of making it illegal to grow your own food.

As far as I know the Senate has not voted on the bill.

This is a stealth issue that should be exposed.

1 posted on 08/12/2010 6:31:46 AM PDT by Texas Fossil
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To: Texas Fossil

Why worry? We can just start sending them the corn liquor (ethanol) to drink that we are subsidizing to be made from our grain. It’s damned near as good as the Vodka!


2 posted on 08/12/2010 6:39:11 AM PDT by mazda77 (Rubio for US Senate - West FL22nd - Hayworth for US Senate - Scott for FL Gov.)
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To: mazda77

Hey Obamathon, how about kicking up the ethonol made from corn to a higher percentage of fuel...that should be the ticket. Oh I forgot, your EPA is already considering this.


3 posted on 08/12/2010 6:44:31 AM PDT by Mouton
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To: Texas Fossil

The USA grows somewhere around an unbelievable 1 ton of corn per person per year! We have plenty to share.


4 posted on 08/12/2010 6:44:35 AM PDT by jjotto ("Ya could look it up!")
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To: Texas Fossil

Let them eat oil.


5 posted on 08/12/2010 6:45:51 AM PDT by DManA
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To: jjotto

Been driving around Mn lately and I can report the corn crop looks fantastic. I hear Iowa got slammed this week though.


6 posted on 08/12/2010 6:46:45 AM PDT by DManA
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To: jjotto

I wish less of that corn were going into gas tanks and sodas!


7 posted on 08/12/2010 6:47:22 AM PDT by 9YearLurker
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To: mazda77

It is interesting how differently ME & Europeans view the price of things we purchase from things we sell them. Oil embargo’s are one thing, but food prices (out export) is quite another. They cannot eat the oil.

There is no better example of how freedom in the U.S. has benefitted the world than the “agricultural green revolution” of the past 30-40 years. But our current government can yet mess that up. This nation has never known famine, but if you want to change that, let government take total control all of our food production and distribution.


8 posted on 08/12/2010 6:50:20 AM PDT by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one.)
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To: jjotto

the chinese are buying up all the US surplus


9 posted on 08/12/2010 6:54:15 AM PDT by ckilmer (Phi)
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To: Texas Fossil

The US is still paying farmers not to grow right?

Why there isn’t any outrage about this, I’ll never know.


10 posted on 08/12/2010 6:56:06 AM PDT by Tolsti2
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To: Tolsti2
The US is still paying farmers not to grow right?

No, except for CRP. They are still paid a "subsidy" which is mainly to retain some control on the production. USDA is a huge beaurocracy.

My family has farmed in this county in Texas for 110+ years and before that in AL & GA. When the first "farm programs" were instituted during the depression, my great grandfather refused the subsidy for 3 years. Now you can opt out of the program if you like, but it makes no economic sense to do that. There is a lot mis-understood about U.S. farm production. (about the reality of it, not what you read).

11 posted on 08/12/2010 7:05:39 AM PDT by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one.)
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To: Texas Fossil

US grain exports have been surging since 2009 and farmers have planted much more wheat this year.

It’s a blessing/curse - if corn (ethanol) farmers are planting for export, what happens to us food/fuel prices? 98% of grocery store food includes corn fillers and our gas tanks are mandated to have at least a little bit of corn water in most markets.


12 posted on 08/12/2010 7:12:02 AM PDT by sbMKE
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To: jjotto

“We have plenty to share.”

Share...like the Middle East shares its oil with us?


13 posted on 08/12/2010 7:14:16 AM PDT by A Strict Constructionist (Oligarchy...never vote for the Ivy League candidate.)
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To: Tolsti2
Является ли русский ваш основной язык?
14 posted on 08/12/2010 7:17:40 AM PDT by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one.)
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To: Texas Fossil

“They are still paid a “subsidy” which is mainly to retain some control on the production. USDA is a huge beaurocracy.”

We have to help ADM pay for those adds on Sunday morning political talk shows.


15 posted on 08/12/2010 7:18:27 AM PDT by A Strict Constructionist (Oligarchy...never vote for the Ivy League candidate.)
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To: Texas Fossil

No, I barely know any. Have an old friend from Minsk though.


16 posted on 08/12/2010 7:18:43 AM PDT by Tolsti2
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To: sbMKE

The problem with U.S. agriculture is not production, but marketing and how to do it profitably.

The grain speculators have made all the profit on this one. When wheat harvest began here about 7-8 weeks ago, the local elevator price was $2.38 per bushel. The current price is about $6.00 per bushel. The excuse for the low price was because of the wet cool year the protein content was low (it was not). Then there were 2 days when the local elevator would not buy wheat at all, because of the Gulf Oil Spill, another excuse for a lie. What it was all about was to take advantage of the situation.

If you think that the world grain market is not controlled by the marketers (ADM, Continental, Cargill) you are mistaken. The only time they do not control it is when the supply is low or demand is much more than production.

If you are ever hungry in this country, do not blame the farmer. Blame the beaurocrats and the marketers/speculators.


17 posted on 08/12/2010 7:25:10 AM PDT by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one.)
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To: Tolsti2

I had looked at some of your posts and was just curious. I only speak English (& weak Spanish), but have become comfortable with machine translation.


18 posted on 08/12/2010 7:27:57 AM PDT by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one.)
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To: Texas Fossil

Hopefully I don’t come across as an ESL student :(


19 posted on 08/12/2010 7:35:47 AM PDT by Tolsti2
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To: Tolsti2

I discovered machine translators when I was following the Persian news out of Iran. Made a number of friends that way, but found that there is no good translator for Farsi. It was necessary to make very simple statements, and to reverse-translate to verify that intent was close.

But it did work.

I am a history student, but not a Middle Eastern History student. I have come to respect the Persians in Iran. Not the stinking Mullahs (or their Hezbellah buddies).


20 posted on 08/12/2010 7:44:00 AM PDT by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one.)
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To: Texas Fossil

And food is cheap here because of the farm subsidies.


21 posted on 08/12/2010 7:51:09 AM PDT by <1/1,000,000th%
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To: Texas Fossil
Wheat prices have risen by nearly 70 percent since June

Don't know how true this is. Yesterday's closing grain elevator bid at Beatrice/Dorchester, Nebraska was $5.65 per bushel. On 14 Jan 2010 it was $4.54. Looks more like 25% to me. I don't have the number for June, but I doubt if it was down to $3.30.

22 posted on 08/12/2010 8:03:11 AM PDT by Western Phil
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To: DManA

I live in WV, a couple of weeks ago I did a trip to Indiana. The corn throughout Ohio and Indiana looked very good. If that is indicative of the rest of the midwest it will be a good year.


23 posted on 08/12/2010 8:24:09 AM PDT by phormer phrog phlyer
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To: Tolsti2
The US is still paying farmers not to grow right?

Please explain which farm program pays farmers not to grow crops.

24 posted on 08/12/2010 3:44:41 PM PDT by jjotto ("Ya could look it up!")
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To: jjotto

http://campusbrownie.wordpress.com/2010/07/11/why-do-we-pay-farmers-not-to-grow-food/

“Farmers who grow staple crops, like wheat, cotton, corn and soybeans, get a check based on the acres they grow. Some other crops have set prices, and if the price goes below that the government makes up the difference for the farmers. Farmers are even paid ­not to grow certain crops, so that a limited supply will keep prices higher”


25 posted on 08/12/2010 3:48:31 PM PDT by Tolsti2
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To: Tolsti2

All staple crops are at near-record production levels. How much more could be produced?


26 posted on 08/12/2010 4:02:22 PM PDT by jjotto ("Ya could look it up!")
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To: jjotto

Doesn’t matter, we’re throwing $66b away to farmers for subsidies.


27 posted on 08/12/2010 4:37:56 PM PDT by Tolsti2
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To: Tolsti2

That’s it.

Farm subsidies do NOT depress production, they encourage it, at or below break-even prices.

Lower commodity prices just mean more room for processing and promotion mark-up; the finished products have a price determined by the market.


28 posted on 08/12/2010 8:07:52 PM PDT by jjotto ("Ya could look it up!")
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