Corn’s impact on the food industry is unlike that of any other agricultural commodity. At its most basic level, corn is a food staple for billions of people around the world and a key ingredient in dozens of products like breakfast cereals, baked goods, breads, tortillas, chips, soft drinks and even bourbon. But its reach goes much further.
Corn drives fertilizer prices because corn plants suck up soil nutrients more than almost any other crop. It also plays a critical role in the price of meat because corn is included in most types of feed for cattle, hogs and chickens.
“It’s practically in everything we eat,” said Douglas Yungblut, a farm consultant based in Waterdown, Ont. “It does drive a lot of the other commodities, other grains tend to follow it as well.”
How big is corn? In 2009, the value of the crop in the United States, the world’s largest producer, reached $49-billion (U.S.).
More Here..
Yeah, yeah, so WTF, the BLS will still say you don't need a COLA cause they don't count food in the core, only when oil goes back to 100 bucks a barrel, since that's what they count, and that Bernakapart fool will keep the fed at the "extended" garbage and keep interest rates at idiot levels cause there's NO INFLATION.......
ReplyDeleteSo why worry, be happy, smirks
Corny news:
ReplyDeleteEven countries like “great” Britain are hitting the ropes as food security gets worse.
In the poor third world the situation will get very bad indeed very fast .
The protests in Egypt after food price rises may seem like mild child play soon, if the hungry Third World turns to Peoples War for national independence and building their own food security.
Hundreds of Millions of children are already malnourished in this free trade dollar hegemony system world !
Its hard for counties of small farmers to compete with the often directly and indirectly subsidised grain farms of the First World like America
In Britain
Pig farmers warn of pork price rise as their feed costs soar
Two thirds of British pig farms could be on the brink of collapse within two years
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A bacon sandwich could become a luxury if the crisis hitting British pig farms pushes up prices.
British consumers are being warned that they will end up paying much more for pork if the financial crisis gripping the country's pig farms is not addressed. More than two-thirds of pig farmers say they will be out of business within two years due to the soaring cost of feeding their stock.
The price of wheat and other staple crops has almost doubled over the past year, resulting in an increase in the cost of animal feed. As feed is responsible for the majority of costs involved in pig-keeping, the rise has had a significant effect on Britain's 2,000 commercial pig farmers."
America exports its Economic debt crisis and its inflation by printing even more debt money for speculators in food commodities ,who are now able get cheap or near free cash from the Fed to export that inflation, as foreign investments and commodity speculation driving up world food prices.
And Food in America ?
It seems most of its pork production is in countries like Mexico as we saw in the last Flu scam.
Thats gotta be good for American food security .
But perhaps it does not matter .
Even if the price of Pork is going up in america too?
Despite the claims of Bernanke that inflationin America is low and is fully under control.
Most americans survive and get fat on corn derived saturated fat diets anyway + a bit of grain fed "chicken" nuggets made from scaps and on potato chips ,not much real pork or beef.
The biggest American chicken producer closed its factories a year or two ago as capital needed to export the jobs to cheaper labor.
And maybe 40% of corn production is now diverted into ethanol for american cars to patrioticaly practice the good fight fight by fighting global warming.
But we had a record corn crop so how could that be??? Oh yeah! That's right, we use 25% of the corn crop to make subsidized ethanol. So lets see... We through our taxes bay $1.30 per gallon of ethanol to have our corn crop taken away from our food supply! Did I get that right? And no we will all have to pay more for food!!! Makes perfect sense to me...
ReplyDeleteAs well as speculators there are food monopolies like Cargil that dominate food supply and prices internationaly.
ReplyDeleteSubsidised cheap grains and even "Aid" is dumped on poor third world food markets ,dropping the price that can be got by competing local farmers on the local markets
There are more food related profits for the First World than appearences ,as well as grain supply there are international companies making a 'little" here and there IN MANY CAPTURED COUNTRIES from manufacturing and distribution of branded and market dominating products ,for example Coca Cola in food and beverages .
Their are nearly 7 billion mouths on the planet ,many are two ot three bucks a day people that must spend MOST of their incomes on food to survive.
Let us imagine even a five or ten percent profit margin on all their purchases flowing to the dominant transnational companies and futures speculators in misery and poverty from the rich First World .
Over the Year That adds up to many millions of dollars every day.
IN fact TRILLIONS of dollar profits every year from from poor and often hungry people are flowing to and enriching the First World.
The rich imperialist countries have created and profit from that poor world misery and the poor world people must feed in the profits demanded, subsidising the living standards in a rich First World .
many will be farming their own soon, but yeah there's no inflation, when they weigh inflation with deflation in housing and commercial real estate it's a wash, so no inflation..just don't buy any food, nor drive to get it.
ReplyDeleteFarming for yourself is only subsistence .
ReplyDeleteBut we live and survive in a social ,commodity producing ,world.
Commodities ,are produced for the use and consumption of the other persons in society and are exchanged nowadays ,not in primitive barter, but via money in equal exchanges of value in markets.
Big capitalist large scale farming ,such as grain farmers using huge costly machinery investment of earlier created value invested as capital ,reduce the cost of the commodities and can sell the product in bulk ,even by making a total profit by making a small profit per ton.
These big capitalist farmers dictate the market prices by selling at the value of their product ,as long as they can recoup the cost of their labor and they hope to make an average profit for the invested capital in land and machinery used up .
Organised, efficient ,Commercial Capital ,seeks its advantages and its profits from that system in distribution and by trade in more distant markets, where a better price may be got.
In distribution, necessary labor in transportation and packaging for convenience, may add value . But apart from that, distribution adds no new value to the commodities themselves.
Competing by survivalists in those markets dominated by the big farmers and efficient distribution networks the small scale subsistence producer cannot sell at a profit enabling him to accumulate value .
Even barter for equal exchange of your own labor created value is difficult.
Why would someone exchange a pound of your tomatoes for a pound of bananas, if a distributor can bring in cheaper bananas from a distant more suitable area?
Or could you afford new clothing ?
Even in an instant “free market” gold currency ideal.
Thus as long as the subsistence farmer or family is entirely completely self supporting in food ,shelter and clothing .A subsistence farming ideal will only be self created poverty as we see in the Third World.
An aim to be individualist subsistence survivalists on a limited labnd supply can only provide a small chance for a very small percentage of Americans.
You and your children will need more than tomatoes for barter and an an infinite ammunition supply.
That future imaginary subsistence dream only leads to Guns ,Gold and individualist Goons trying to find a Gas supply and loot to feed themselves.
If existing ,insolvant capitalist society cracks up in this debt crisis, as seems likely
people need to organize commodity distribution as Human social products .
That might be achieved by capitalism or by building social co-operation in socialism.
Hungry people having lost faith in capitalism and perhaps even their housing and savings value in its so called “free markets” system ,that de-industrialised their country and exported their old jobs for the profits of an elite ,are likely to turn to socialism as a way out, not individualist survival.
The elite seek to preserve their system by getting their head bankster to socialize their own losses and slowly inflate away the value of dollar debts.
But as the debts are so huge and confidence in the system and the dollar value falls this will probably just end all in a National default anyway .
But this “recovery” process will take decades and a nation of underemployed Debt Peons.
Even Ben Shalom points to long term unemployment as necessary to achieve ‘recovery” of real profitability and therefore an expansion of the food stamps for paupers system!
The only alternative if you are keen on rebuilding the failed capitalist dream quickly is a “Jubilee Year” abolishing all debilitating debts so as to kick start the system again with a fresh start after the dust up settles.