Wednesday, January 5, 2011

2011 INFLATION TAKING OFF FOR REAL: brace yourselves

Dec. 27 (Bloomberg) — Corn may rise for a sixth straight week and soybeans may gain on speculation that hot, dry weather will damage crops in Brazil and Argentina, the two biggest exporters after the U.S.
Seventeen of 24 traders and analysts surveyed in the U.S. on Dec. 23 said corn will rise, and 19 of 25 respondents said soybeans will advance for the fifth time in six weeks. Last week, corn futures for March delivery climbed 2.9 percent to $6.14 a bushel on the Chicago Board of Trade. Soybean futures for March delivery rose 3.8 percent to $13.60 a bushel.”
In Colorado, lack of moisture is threatening wheat crops in what farmers have described as the worst they have seen in 30 years.
The Greeley Tribune
Farmers are survivors.
That’s why many will shrug off this year’s bad start to the winter wheat crop, still resting on the little bits of hope for moisture they keep alive.
“Now, it’s probably the worst we’ve seen in 30 years,” said Jim Cooksey of Cooksey Farms southeast of Roggen.
Four months of little to no moisture is taking its toll on the crop, which blankets fields across northern Colorado. That means hopes for even an average harvest next summer are starting to dwindle.
In London, wheat prices rose to match prices in France and United States. Dry weather in Argentina is also threatening corn and soybeans.
In Southern Florida, unusual freezing has destroyed many of the crops that were saved before the freeze that happened there two weeks ago. Governor Christ has extended his crop freeze emergency order.
The industry has already lost close to 273 million dollars since early Decemeber.
Whatever crops were salvaged following a freeze nearly two weeks ago, were done in by last night’s chilly temperatures, said Frank Oakes, the owner of Oakes Organic Farm and Food & Thought in Collier County.
“The frost this morning was thicker than I’ve seen it,” Oakes said after surveying his crops near the Corkscrew Swamp Sanctuary early this morning. “It looks like the ground is covered in snow.”
On December 28th, The New York Times published an article with the shocking title, “Global Food Prices in 2011 Face Perilous Rise.” The article explains how there is talk of a coming worldwide food crisis and that government must act to avoid a disaster.
New York Times
Food prices globally are rising to dangerous levels. There is talk of a coming crisis, like the ones that produced riots around the world in 2008 and 1974. Many of the ingredients of a disaster are present, but governments can stop the problem before it causes too much damage.
A warning sign is the price of traded staples like wheat, corn and rice. Prices shot up in 2010, soaring 26 percent from June to November and brushing the peaks of 2008, according to the Food Price Index kept by the Food and Agriculture Organization of the United Nations. That hits poor countries that import much of their food, including the Philippines, Mexico, Nigeria and Pakistan.
Floods have ravaged Queensland Australia and food prices are expected to rise by 50 percent. Upwards of 20% of crops have been destroyed.
The damage is likely to push up the cost of groceries including melons, tomatoes, mangoes, and bananas from Wednesday.
Affected farmers on Tuesday revealed both summer and winter crops had been destroyed, with many hectares of newly planted grains, vegetables and fruit submerged by flooding.
FOOD prices could rise as much as 50 per cent as the Queensland farming industry is hit with flooding losses of at least $400 million.

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