Saturday, October 9, 2010

Ready? Food Prices Set To Explode This Winter

Some recent headlines from the Financial Times: Soaring prices threaten new food crisis – Oct-08
Raw materials index soars to two-year high – Oct-08
Wheat and corn rise as Ukraine limits exports – Oct-07
Shortfall drives tin to record high – Oct-05
Food inflation is real, and it is here. A comment from a recent reader’s post: “Just yesterday I compared my receipt from a grocery run to prices I have from the same exact store from September 15, 2009. Bacon? Up 52% to $13.69 from $8.99 for 4 lbs. Butter? Up 73% to $9.99 from $5.79 for 4 lbs. Pure vanilla extract up 14% to $6.79 from $5.95. Chopped dried onions up a mere 2% but minced garlic (wet) was up 32%.”
Defensive buying by investors worried about the inflationary effects of quantitative easing (QE) is behind the latest rise in gold, metals and food commodities to near record levels this week. Analysts have the usual litany of explanations: Chinese demand; plans for more QE from the Fed; a billion bushels of grain a year going to make ethanol….as Agricultural commodities prices exploded again on Friday, threatening higher global food prices, US forecasters slashed grains production estimates after adverse weather damaged crops worldwide.
In Chicago, main agricultural commodities surged to daily fluctuation limits imposed by exchange rules, the FT reported. Traders, unable to use futures because of the daily limits, bid indicative corn prices to $5.60 a bushel in the options market, up 12.5 per cent. European wheat prices jumped by 10 per cent while the cost of other key commodities, including soyabean, sugar, cotton, barley and oats, also surged.
More Here..

Global Leaders Fail To Resolve Differences That Threaten Full-Blown Currency War
Read more: Here..


  1. raw ores oil..although up is as currency's down...bad mix for food and everything else either way

  2. what? no way, ......smirks..... everything is at "0" right.

    The CBO will be telling you seniors and retirees there's no inflation, so NO COLA everything is "0" in a couple months.

    Uncle Ben will keep rates low for an "exceptional time" and keep the printers humming for the banks, so they don't need to pay a worth while rate to you retirees or savers looking to keep up with this "0" inflation.

    All this to keep Kramer playing with his noise machine on CNBC and yelling about a "rally"

    at this point, its no more "preparing" I been doing that one way or another all my life, and now I'm gona live with whats left until I die.

    nothing lasts forever no matter how hard you want it to.

  3. I have been commenting on food inflation for the past two years--which the mainstream media has completely ignored. At "the market ticker" web site, you can see current charts on the soaring cost of some foodstuffs. Our government continues to manipulate data so this will be the third year I get no cost of living (COLA) raise despite all my expenses going up. In fact, the gov't says that I don't deserve a COLA because the price of gasoline went down...but they don't count the price of gasoline when they do the math. Talk about a Catch 22!


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