Food inflation is the killer of all business cycles

[charliep]

within North America and Europe (other parts of the world are different), the consumer does adapt. They change where they eat (more at home) and what they eat (more hamburger/chicken and less steak). The food inflation issue will be a bigger issue in areas of the world where diet is basic and represents over 50 % of the consumers income.

A lack of consumer confidence brought on by higher home expenses/more expenditure on basic needs will change attitudes. As indicated, the consumer is the driver of the current up surge in financial markets (accepting they are doing it in Canada on the backs of cheap interest rates). Locked in a 5 year morgage at 3.69% on my house.

[hedgehog]

trouble is, the world is eating oil.
what price will wheat be when there is no fossil fuel to make nitrogen?
definitely no plasma screens then.

[ado089]

Buisness wise i don't care about the people how spend more than 50% on food. They will spend 100% if they need to, socialy a different story. As for North America...Lets analyze a typical persons monthly expenses. Mortgate $800, vehicle payment $750, gas $450 utilities $400, insurance $200, Entertainment $400, groceries $400. I'not icluding eating out because that can be any figure you want it to be but food is far from being the money hog that say owning a vehicle or house is.

[Hopperbin]

We need the open market to come to our rescure now. Like dumb and dumber, these two are, riding on grandpa's money and possibly getting the girl by being the dork. One more generation should do away with them.

[vvalk]

what amazes me is how Burbert nor any oher CWB supporter can not answer or explain why most farmers do everything they can to avoid CWB grains and how specialty/pulses/oilseed acres are exploding,Again deflect deflect deflect on to big bas multi nationals.
CWB and NFU 101

[greybeard]

the chart Grassfarmer posted really shows the predictability of the highs and lows with the highs coming around August and the lows coming in January and February on the long term chart.
It really goes against the trend to see highs in January. Where are we going from here?

[grassfarmer]

Rising price through what is normally a low point in the yearly cycle as well as breaking through a new level of support that hasn't been reached in the past decade indicates to me that this is going to keep rising.
The same happened in the UK around 3(?)years ago - prices really hadn't changed much in 10-20 years other than occasional up and down spikes and then they took around a 30% hike which has been more or less maintained. Our time has maybe come for a similar correction. What the effect on these prices will be due to the US/CDN $ difference is something I can't figure out.

[wilagro]

Walk, I have neighbours who have to sell canola right from the combine as they have bills to pay. So they get $10 bushel and then watch the prices rise to $13 or $14 a bushel later on and curse and wail and rend their garments and wish that there was some kind of pooling to even things out a bit.

But, it won't happen 'cause that's the way the open market works...you take what they offer when they offer it or else you keep it in the bins.

[gregpet]

Wilagro, this happens yearly since there is a lack of cash flow from the CWB grains and farmers are 'forced' to sell non board crops to subsidize the pooled grain and lack of movement when cash is needed.

Thanks for making the case of the cash flow needs of prairie farmers and the need to end the CWB monopoly over western Canadian farmers.

[bucket]

wilagro

Since the open market grains are so bad - just don't grow them. Isn't that the logic I hear from the pro-cwb camp when we are bitching about delivery and pricing from the cwb?

[BTOfarmall]

wilgagro - Knot my fault yer neighbours are as Dumb as You. Keep da grain in da bins if'n you's want a higher price. Need cashie??? Cut da Fat out da Operation, you's kin hold out fer higher prices. Follow Me, show you's how its done....

[hlg]

with or without CWB, there is always price pressure right off the combine. People need to have something contracted, with no CWB can be any grain, with CWB use cash advance.

[BTOfarmall]

I NEVER price a bushel of da Combine. Why grow it to give it away???

[burnt]

That market wants to find support right about now.