Skip to comments.Prices Soar on Crop Woes(U.S. Cuts Global Grain Supply Outlook)
Posted on 01/13/2011 6:24:17 AM PST by TigerLikesRooster
JANUARY 13, 2011
Prices Soar on Crop Woes
U.S. Cuts Global Grain Supply Outlook; Higher Prices Expected at Grocery Stores.
By SCOTT KILMAN And LIAM PLEVEN
Evidence of tightening global food supplies grew as the U.S. Agriculture Department cut its estimates for global harvests of key crops and raised some demand forecasts, adding to worries about rising food prices.
Prices of corn and soybeans leapt 4% Wednesday and wheat gained 1%, continuing the broad rally in commodity prices that began in June. With yesterday's gains, prices of corn futures contracts are now up 94% from their June lows; soybeans are up 51% and wheat is up 80%.
The USDA's revisions reflect the impact of dry weather in South America and floods in Australia, which have compounded supply constraints that first started to emerge in the middle of last year, when a drought in Russia ravaged that country's wheat fields. The agency also cut estimates for U.S. harvests of corn and soybeans.
At the same time, demand is increasing. The USDA said ethanol producers likely will increase their use of corn, and consumption by emerging market countries continues to be strong.
(Excerpt) Read more at online.wsj.com ...
Well, it looks like the government will have to nationalize the agriculture industry now, ‘cause that will save us all.
People are starving nd we are making gasoline out of corn and refusing to drill for real fossil fuel.
I suppose that makes sense to SOME Stupid SOB.
Energy prices going up will also effect the rise in food commodities.
High energy cost to produce and ship grain will always be passed on to the consumer.
Not to worry, farmers will still be complaining about something or other.
We need price controls. They always work.
B. Hussein Obama
” Well, it looks like the government will have to nationalize the agriculture industry now, cause that will save us all. “
Already done - look up S510, which was stealth-passed by the Lame Ducks while everybody was hyperventilating over the ‘BIG’ issues.....
What is McPsycho’s position on this? Somehow I think that he agrees with Zero.
Notice how the gov’t and media are blaming “crop woes” when the rise in prices are directly related to the printing of money and expansion of the Fed’s balance sheet.
Food prices only go higher from here. Sorry for the bad news.
There is plenty of supply, the whore speculators are trying to drive up price.
From the article:
“The USDA again raised its estimate of how much of that crop will be consumed by the ethanol fuel industry, which enjoys extensive government incentives, to 4.9 billion bushels, up 100 million bushels from its December estimate.”
Think an extra five BILLION BUSHELS of corn would lower prices at the store?
I agree and look what Dallas Fed President just said
Fed’s Fisher 1/12/2010...
“The entire FOMC knows the history and the ruinous fate that is meted out to countries whose central banks take to regularly monetizing government debt. Barring some unexpected shock to the economy or financial system, I think we have reached our limit. I would be wary of further expanding our balance sheet.”
Right on but we should remember that Congress could stop this.
“But here is the essential fact I want to emphasize today: The Fed could not monetize the debt if the debt were not being created by Congress in the first place.”
The weather never fails to disappoint.
And current fuel prices have NOTHING to do with Obama halting drilling in the Gulf. Right.
We need to drill in the Gulf, and along both coasts. We need to drill in ANWR and along the northern Alaska coast.
We need to streamline approval for nuke plants.
We need to mine coal and encourage coal-to-gasoline technology. We also need to get oil from shale and tar sands.
Every dollar increase in the price of oil, is $$$ in the pockets of the Arab nations that fund the Global Jihad.
Don't forget R. Nixon.
The reality is that the extra 5 billion bushels would depress corn prices to the point of putting farmers out of business, which is what should happen.
But remember, government interference subsidizes food so it is cheaper for the consumer, and ever larger corporations will control the food supply.
Around here the only thing farmers can complain about is where they are going to put all that money.
You’re right. My dad was very angry about nixons’s wage/price freeze.
Yes, but he backed off. The others never did.
Thanks for posting.
Obama has gotten a pass on the terrible economic news this past week due to the mainstream media murder blame game.
Rising grain prices are just one impact from printing funny money by the Federal Reserve.
People are starving because they are deprived of corn starch?
Government owns 1/3 of the land in USA what are they growing on it?.
Congress could not spend like they do without the FED. Congress had restraint until 1913.
Without the Fed, the spending stops. Mr.Fisher is just as guilty.
Personally I think the Fed should be abolished but the fact remains our politicians have failed us, they fail on spending and without raising the debt ceiling the Fed. could NOT monetize our debt and they fail on reigning in the Fed. I do view the Fed. as complicit however because they are scratching one another’s backs, i.e, bail outs.