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| Economy |
| Supply Worries Spur Corn Prices |
| 2011-06-19 |
| h/t Instapundit Worries about a lack of corn are driving up spot prices, forcing buyers to pay much more than benchmark prices for the grain they need now. Never mind the debt-crisis |
| Posted by:g(r)omgoru |
| #9 This is a mixed up mess. Economics was not my cup of tea. Deflation is now involved. Manufacturers are desperately trying to keep costs down in many ways right now. Smaller sized products. Cheapest meats and breads to get what business they can. Hot dogs, baloney and cheapest buns are selling but big ticket meats are down. I have never seen so much display space devoted to these cheap items. So now you must have unit volume to make this work. Then 20% margin on one or two items are not going to pay the bills on a large operation. 70% off specials, inventory reductions are all signs of deflation. That's why when you drive into different areas you are seeing for sale signs, tall grasses of neglect, and abandoned properties. Only the strong will survive now. The rich will get richer because they will be the only ones with money. |
| Posted by: Dale 2011-06-19 22:37 |
| #8 Anonymoose - at least there's no inflation ... oh, wait ... |
| Posted by: CincinnatusChili 2011-06-19 12:59 |
| #7 It sounds like a bad time to be poor in a Third World country. How will the Arab Spring uprisings end, when the interim rulers can't fix high prices and shortages? |
| Posted by: trailing wife 2011-06-19 12:48 |
| #6 To have some objective perspective on things, have a look at this commodities chart. Use the top drop down menu on the left to select the commodity, and use the right drop down menu to select "1 year". For the year, corn is +98.66% Wheat is +45.51% Coffee is +59.64% Sugar is +63.93% Heating Oil is +39.69% Unleaded Gas is +37.92% |
| Posted by: Anonymoose 2011-06-19 11:26 |
| #5 Appropo of absolutely nothing except for the impending calmity de jour, signs at Winn Dixie warning about a shortage of corned beef of all things, heh sign was right by the fully stocked Self Propelled Armoured Meat zone. |
| Posted by: Zombie Hillary Lover 2011-06-19 11:05 |
| #4 Corn is not the only grain we are having troubles with. Dairy, poultry, meats, breads, dog food, everything we purchase to eat we will see stock outs or 50% price increases yet to come. Just to ship vegetables to the east from California your looking at $8400. shipping costs. Companies that have secured a fixed cost on products will have back orders galore since suppliers can't supply below their cost. |
| Posted by: Dale 2011-06-19 09:42 |
| #3 Just in time to swap corn syrup for real sugar - from Cuba. It's all part of the plan. /sarc off |
| Posted by: Procopius2k 2011-06-19 09:38 |
| #2 Watch your food and fuel prices go up accordingly. Even if the ethanol subsidies go away, the mandates to use the cr*p still remain. Also too bad that so little of this price increase will actually benefit the farmers themselves. |
| Posted by: Mullah Richard 2011-06-19 07:04 |
| #1 Buy more, things are bad. We're nearing Peak Corn. Stock up now and avoid the looming catastrophe. 50 bushels of American Maize in your basement is the very minimum you should keep on hand. /basement pump sales. |
| Posted by: Zombie Hillary Lover 2011-06-19 06:16 |