Skip to comments.Food Price Surge Is Unlikely to Revert
Posted on 03/27/2021 5:00:10 AM PDT by Roman_War_Criminal
Agricultural commodity prices have surged almost 50% since mid-2020, causing concerns over food price inflation around the world and sometimes resulting in increased export taxes and quotas by producers at a time when importing countries want to import more. We can identify four major factors driving the surge across agri commodities that will remain active in 2021: 1) US dollar weakness: Rabobank forecasts the US dollar to remain soft through 2021 (US dollar index -7% lower since mid-2020), but no further weakness is expected. 2) Weather: La Niña could extend into the US spring planting season. 3) Global demand: Good global demand (either for animal feed or storage) to continue through 2021. 4) Speculation: Speculative appetite is likely to support prices through 2021.
Global Weather Weather woes were experienced in many key producing regions. The current Russian and US winter wheat crops saw a moisture deficit going into the winter and recent cold weather damage. Furthermore, drier-than-normal weather in southern Brazil and Argentina since mid-2020 continues to negatively affect the crops grown there: soybeans, corn, cotton, sugarcane, and coffee. This drier-than-normal weather in parts of South America and the US tends to correlate with La Niña. Some weather models forecast La Niña to continue for longer than originally expected, possibly affecting the northern hemisphere planting season.
Global Demand Import demand has been outstanding for many agri commodities, even though the total consumption for some of these commodities is negatively affected by Covid-19 (cotton, coffee, cocoa, and sugar).
(Excerpt) Read more at research.rabobank.com ...
Famines & Pestilences & Inflation.
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Congress needs to do something about this - Price controls on commodities should stabilize this situation! /s
I wasn’t holding my breath with these libtards in charge and been sounding the inflation bell for a while following trish regean’s early prediction.
5) Donald J. Trump deposed.
How about lumber. A 2x4 was around $3 and now it’s over $7. But OSB sheets have gone from $7 to $35. I don’t use them any more.
Shipping rates went up because of the gas price increase.
not only will food prices soar, the availability will be going down
Maybe we should be able to just take whatever groceries we want without paying. It would be the same as living in a place without paying the rent. I’m sure the groceries stores would keep filling their shelves for us.
Maybe they could invent a ship that runs on wind.
Was that tongue in cheek? ;)
All the more reason to garden yourself and grow your own food.
I thank God every year that we do not have to survive on what I can grow in our garden. They are a LOT of work and one person just can’t do it all.
However, it will supplement what you can find at the grocery stores and if you do have a good crop, you can share or barter with others as well.
> Maybe they could invent a ship that runs on wind.
What kind of sorcery is this?!
“Price controls on commodities should stabilize this situation!”
Good Lord, I forgot about those. Look for the Harris admin to propose them. They are too woke and stupid to research and discover they won’t work. Want to bet that turd, Krugman, proposes price controls soon?
China has a massive food shortage this year. And that’s a lot of people. Also, someone stuck a cork in the Suez. They’ll blame lote on that. And Trump, because. Just because.
Prices of almost everything have been leaping lately. Spend, spend, spend! Surprise! Milton Friedman was right, of course.
With the price of gas up about $.50/gallon - or more - (California is hitting $4.00/gallon) - that will raise the price of just about everything else.
“How about lumber.”
Red Oak has gone up 20%/ board foot in the past 4 months, where I live.
When He broke the third seal, I heard the third living creature saying, “Come.” I looked, and behold, a black horse; and he who sat on it had a pair of scales in his hand.And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.” [Rev. 6:5-6]
That just doesn’t happen over night. This article gives a good explanation how it is taking place now.
“Shipping rates went up because of the gas price increase.
Yes! Energy Prices inversely proportional to GDP, too. Energy involved in all stages of manufacturing and transport. Loaf of bread goes up when diesel goes up. Gravel, too. Aluminum is hugely energy price dependent.
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