Agflation!

3650-harvest corn.jpg

Posted by Tina

Agflation is what they’re calling it and according to some folks it means higher food prices are on the way…a CS Monitor blogger, Joshua M. Brown excerpts information from various sources:

“‘Shocking’ corn prices: the other rising gold market” – CS Monitor

Keep obsessing over gold, but the real explosion is happening in the agricultural commodity complex. Food prices around the world are exploding. Farmer Brown has been discussing the Agflation theme here since the summer. It’s happening… ** “Shocking!” That is the term used by some grain traders just after the release of the USDA’s yield estimate for this year’s U.S. Corn crop. The USDA projected 155.8 bushels per acre yield, which is well below the 162.5 bushels per acre projected in the September crop report. ** Meat prices are poised to extend a 14 percent rally this year that drove U.S. retail costs to the highest levels since the 1980s as surging corn futures prevent livestock producers from expanding their herds. ** As the world markets opened at 8:00pm est, a shocking thing happened to food commodities. As a whole, futures contracts jumped nearly 9% in an instant on the world markets

.

We knew this would happen…inflation is an evil that will punish everyone and rob working Americans of more of their hard earned cash.

Keynesian policies and forced “alternatives” just do not work! BIG government does not work. We must rid ourselves of the incompetence and extremism that creates such unnecessary misery!

Vote wisely Pilgrims.

This entry was posted in Uncategorized. Bookmark the permalink.

5 Responses to Agflation!

  1. Harriet says:

    When we started raising corn for fuel rising prices everywhere was predicted, but Political correctness prevailed.

  2. Mark says:

    Tina,

    I am surprised you posted this article because it makes you look bad. You really should do a bit more research before you expose your bias.

    The corn yield is down for climatic reasons, not political ones. Here is a clip from wallacesfarmer.com

    “With the hot weather this summer, growing degree day accumulation has been running ahead of normal since early July, says Elwynn Taylor, Iowa State University Extension climatologist. That’s been a negative factor on yields.”

    “With growing degree days running ahead of normal since the first of July, that has advanced the crop growth and shortened the time available for the crop to reach maturity,” says Taylor. “A lot of farmers tell me this year’s corn crop is racing toward maturity–it’s going faster than they’ve ever seen it mature in a year when we didn’t have a drought. Well, they are exactly right. That’s because crop maturity this summer was advanced by the warmer than normal nights we had. The crop matures faster in those types of growing conditions. What it means is there are fewer days for the corn kernels to gain weight, and that does cost you some yield potential. You end up getting less yield per acre.”

    Like I have been telling you, higher temperatures lead lead to falling crop yields.

    Welcome to climate change.

    And thanks for making my point.

    : )

  3. Tina says:

    Mark: “The corn yield is down for climatic reasons, not political ones.”

    Corn yield is effected by weather in any given year and farmers are well aware of the challenges presented by changing weather conditions. What you describe is a weather condition; it is only your opinion that the current change is a result of AGW.

    It is a lie that the price of corn has not been effected by politics. I have excerted from several articles all found at the following URL:

    http://www.wikinvest.com/wikinvest/api.php?action=viewNews&aid=1915368&page=Commodity%3ACorn&comments=1&format=html

    The USDA forecasted in mid August that corn production for the 2009-2010 marker year will be 471 million bushels higher than expected a month ago, to 12.8 billion bushels.[6] After adding stockpiles from last year, the market year’s total domestic corn supply is expected to rise to the highest level on record – 14.5 billion bushels.[6] This in turn is expected to push down prices to $3.1 to $3.9 a bushel, about 7%-8% lower than the forecast made in July.[6]

    **

    Its an ethanol story thats the world we live in with feed prices, says Mark Welch, economist with Texas A&M University.
    Other factors are supporting what is happening in the grain market, but ethanol is the driver. Its the big machine behind these current prices.
    Numbers from previous years show, he says, that grain use can go down during a recession. But in the current recession which is the worst since the Great Depression use has continued to climb, and biofuels have been a big factor.

    **

    The grain is an integral part of the food chain, either by itself, through its use in various other products or as a feed to livestock such as chicken and cows.
    But over the summer, corn also has become an investment with a powerful return, thanks in part to weak-dollar policies and strong demand that has outstripped a mediocre period for production.

    In fact, some analysts think corn prices [US@C.1 567.25 -2.00 (-0.35%) ] could test record price levels of $7.67 a bushel set two years ago when the dollar [.DXY 76.57 -0.50 (-0.65%) ] also was tumbling and investors were looking for anyplace to park their money as the financial crisis raged.

    Corn has exploded since reaching a 2010 low on June 28, rising 67 percent since then and 16 percent in October alone. Its trajectory closely follows the decline of the dollar, which began sinking in early June and has dropped off precipitously as expectations have increased for more money-printing by the Federal Reserve.

    **

    MUMBAI (Commodity Online): US corn futures close lower Wednesday as traders book profits after surge to highest prices in more than two years. EPA’s approval of an increase of ethanol levels in gasoline for model-year 2007 cars and newer fails to extend rally.

    The increase was expected, says Sid Love, analyst for Kropf & Love Consulting. Prices are still up 16% from a week ago as tightened supply outlook has accelerated buying by end users.

    Clearly action taken to force ethanol production as well as the policies that forced the housing meltdown, lack of government oversight of lenders and monetary policy are all having an impact on corn prices.

    Thank you for giving me the opportunity to expand my thoughts.

  4. Post Scripts says:

    Even better than corn is saw grass, more yeild and more ethanol per acre! Saw grass is the way to go, but the corn lobby is in the way.

  5. Harriet says:

    I would like to see nuclear energy plants, once going much cheaper and cleaner.

Comments are closed.