Sunday, December 09, 2007

Move Over "Big Oil," Here Comes "Big Wheat"

And you thought oil prices were high.... what about wheat, soybeans, eggs and milk?

See Captain Capitalism post here, and USA Today article here: "Commodities go ka-ching; buyers go, 'Ouch'"

3 Comments:

At 12/10/2007 4:39 AM, Anonymous Anonymous said...

The change in wheat shows how tight supplies are. The wheat crop declined by just under two per cent year over year and teh price nearly doubled.

Soybeans are a knock on effect from planting the largest corn crop since WWII. That displaces soybean acreage.

Eggs are an effect of chicken feed (corn) not being chicken feed (cheap) anymore.

And so it goes. Expect meat prices to go up with soybeans. Expect some bargain prices for a short while as farmers reduce their livestock to something they can afford to feed.

 
At 12/10/2007 10:56 AM, Anonymous Anonymous said...

Expect some bargain prices for a short while as farmers reduce their livestock to something they can afford to feed.

Maybe Dr. Perry could blog about how much better off cows are in 2007 vs 1949?

After all how many cows ate candy bars and cookies in 1949?

"Besides trail mix, pigs and cattle are downing cookies, licorice, cheese curls, candy bars, french fries, frosted wheat cereal and peanut-butter cups. Some farmers mix chocolate powder with cereal and feed it to baby pigs. "It's kind of like getting Cocoa Puffs," says David Funderburke, a livestock nutritionist"

With Corn Prices Rising, Pigs Switch To Fatty Snacks

 
At 12/10/2007 4:35 PM, Blogger capitalgain said...

The "corn for gasoline" program crashed into the law of unintended consequences.

Subsidies for Iowa corn/ethanol but tarrifs for imported ethanol? Dhuuuuh!

 

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