Posted on 05/27/2014 11:00:53 AM PDT by blam
May 27, 2014 - 02:40 PM
Ned W Schmidt
Agri-Commodities Prices Winning - Or, how long does it take the Street to identify an elephant in the room? Apparently the answer to that question is a time period longer than should be the case. Agri-Food prices have been rising fairly dramatically thus far this year. With an average gain of about 10% since the beginning of the year, eating is becoming far more expensive. Rather than a short-term phenomenon, higher prices for Agri-Foods over time are part of the future, an unavoidable one.
Prices rise for Agri-Foods when demand grows faster than supply. The world wants to eat more dairy products, butter included, and broilers, or table chicken. Supply simply does not respond in short-term to that increased demand. Response to higher demand by the marketplace is simply to raise prices for the commodity. A milk cow does not check the internet each morning for wholesale price of butter, and decide to produce more milk fat in response to higher quotes. And you can be assured that laying hens to do not try to lay more eggs when chicken prices are rising.
As the chart to the right portrays, prices for Agri-Commodities have been rising for quite some time, and recently reached a record high. That history suggests that something different has been happening with Agri-Commodity prices. That something different is that world demand for food is beginning to bump up against the world's long-term ability to supply food. Higher prices for beef will not change the reality that it takes about nine months for a calf to be born. The internet cannot change that fact. Higher prices for Agri-Commodities will not create another acre of arable land in either China or the U.S.
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(Excerpt) Read more at marketoracle.co.uk ...
Glad I’ve got a freezer full of pork chops, steak and butter. But the price of bacon has just gotten silly recently.
Eggs are down. We have 13 layers. The first four are producing more than we can eat. The rest should start producing in another month. So many people around here have layers that you can’t give the eggs away.
We stocked up on Sugerdale bacon at Sam’s Club just before the prices went up so we’re good for awhile. We also stocked up on Bacon Spam, which serves as a good substitute when sliced thin and fried. We just bought 10 lbs of ground chuck from the local slaughterhouse. At $5 and $7 a lb in the supermarket, $3.59 didn’t seem too bad.
Watch for the return of pink slime.
U.S. Seasonal Drought Outlook
http://www.cpc.ncep.noaa.gov/products/expert_assessment/sdo_summary.html
No problem. The political folks, ever aware of population issues, are already fixing things up for tomorrow.
Six legs tasty: First edible insect farm opens in US
http://freerepublic.com/focus/f-news/3160053/posts
“Higher prices for beef will not change the reality that it takes about nine months for a calf to be born. The internet cannot change that fact. Higher prices for Agri-Commodities will not create another acre of arable land in either China or the U.S.”
Maybe ranchers in, say, NV can add acres to their operations...oh....wait...
We just served up a venison hindquarter from the freezer at our family cookout yesterday. Now we have enough left for chili and a large bag of meat in the freezer for another meal. Price $0.00 courtesy of Mr. GG2.
Georgia Girl can survive.
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