[Sca-cooks] Current farm prices and affects on feast budgeting
Terry Decker
t.d.decker at worldnet.att.net
Sat Feb 16 06:53:29 PST 2008
> My guess is that the major reason for increased cost of grains is the
> increasing use of biofuels, which compete for the same agricultural
> inputs.
> --
> David Friedman
In the case of wheat, there have been weather problems with a number of the
major producing areas in the past year reducing the quantity of available
wheat. Since half of the U.S. crop is exported, the global market is
pushing the domestic rise in prices. And to cap it off, the U.S. wheat
reserve is at the lowest it's been in 30 years, so we can't flood the market
to smooth the spike. A shortage of wheat pushes the market in alternative
grains.
Combined that with the increasing use of biofuels you mention and we
certainly get rising prices in the grain markets. Toss in the speculation
that occurs when there are major price shifts and I would suggest we are in
for an interesting time at the grocery.
Bear
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