All over the news tonight again! Food Shortages

[charliep]

Actually not disagreeing with you but looking at current prices. Just an observation that Dec. MGE wheat is $9/bu versus $12 plus in March. Can the market push back to $12 in the next month or two without new information (eg weather impacting US corn yield potential)? Assuming the northern hemisphere crops and southern hemishere wheat crops have cooperation from mother nature, the process of rebuilding world wheat stocks will begin again (or at least that is what the international grains council tells us).

Corn is a truly interesting situation. The US needs the acres this spring and cooperative weather for high yields this summer to feed their ethanol industry. A $6/bu corn market is building in a least some weather concern. I have to note the impact of this price on our livestock industry - particularly if the Statcan barley acreage forecast proves correct and Canada is potentially a US corn importer again. $6/bu CBT corn futures translates into $300/tonne western Canadian feed grain prices. Under the current meat supply situation (and perhaps economic), can the N. American industry can pass along these increased costs to consumers? Does that mean a smaller cattle and pig industry?

If a weather problem occurs, then all bets are off but a person will have to sort the short term reaction from the longer term equilibrium. For anyone who has done some new crop pricing, owning some out of the money calls is likely a good investment as an insurance policy.

[bucket]

Vader the PHILANTHROPIST.

This goes against your liberal ways. You better talk to ralphie soon. Liberals don't like people who forget to take of themselves first. Even Al gore was caught the other day misleading the public about some great ice shelf. Turns out it was a piece borrowed from a computer generated movie.

Hey vader since you had time to spew - why don't you answer some questions on the other threads about the costs of buybacks.

[Vader]

Thank you Mr. bucket.

Perhaps that was meant as an insult albeit rather lame.

There are many definitions of philathropy. The classic one of giving away money would certainly not apply to a poor dirt farmer.

I like this one.

Philanthropy is defined in different ways. The origin of the word philanthropy is Greek and means love for mankind. Today, philanthropy includes the concept of voluntary giving by an individual or group to promote the common good. ...
www.mscf.org/DonorResources/DR_Glossary.html

[bucket]

Bio fuels to blame? I hear this all the time. In canada don't you think that when the cwb issued pros last year it spoke volumes that they and the world didn't want our milling grain. In comparison farmers were being sold on high yield ethanol wheat that would move and get paid.

It will continue and just wait until the federal government allows or these ethanol builders use flow through share offerings for ethanol plants. That how the oil industry was reborn in Alberta. There will be very little milling wheat grown. And poof 500 leeches out of work in Winnipeg.

[bucket]

Vader

Wow your catching on. See how my training will help you become a better liberal politician.

See, you self absorbed yourself in the insult/compliment so you don't have to answer the real questions about the buyback scheme in which you are taking care of yourself. Classic liberal.

[Burbert]

Vader, Thanks for putting the Ritz cracker fans, back in their tiny little box, (ie trash the CWB) Us decoder ring and tin foil hat guys still believe!

[cottonpicken]

Monetary expansion is driving this,and nothing else matters.

I cant wait till orange juice goes parabolic and everybody is standing around scratching their butts saying weather,supply,demand.

[agstar77]

If there is a shortage of food why are grain and oilseed prices dropping while inputs are rising? Funds have pulled money out of the ag sector and are back into equities. Farmers are being conned into planting more and being squeezed harder. The real joke will occur if N.A. crops fail or at least come in short.

[jensend]

to a large extent ethanol is irrelevant to the grainfarmer. the actual net returns will be the same whether grain is used for food or fuel because the farmer has no influence over his cost structure so any extra revenues to fuel will not flow through. the only ones who might actually benefit by increased food prices are the organic producers if the premium to organic production remains intact.

[TOM4CWB]

C.P.

"Monetary expansion is driving this,and nothing else matters."

I must agree.

Consider this:

Oil is being pushed up... because that is the policy of the UN and world powers.

Higher price = less consumption. I now drive a VW Jetta... instead of my 1t Chev.

And... on top oil co's don't mind one bit if oil is $120/b

Why should we go and mortage our farms... to plant the crop this spring... and produce 25% more... to get 50% less?

Vader as done us all a big favour... by dropping $30/bu durum... and $20/bu DNS.


When milling wheat is $10 or $25/bu... it doesn't much matter what pedigree it is... as long as it makes good flour!

There are 101 ways to skin a 'Designated Area' Beaver... and the CWB has had over 80 years to practice!

Food Shortages... Beaver Skins. If short energy prevented groceries from getting to the consumer... or a computer glitch... or whatever else prevented us from visiting to supermarket... THEN there would be a shortage!

For the first time... local folks are actually asking for... and buying flour from our farm!

HOARDING is the answer.

Every consumer on the globe should be convinced to put 200lb of good Beaver flour in the bottom of the pantry... plus 50 lb of rice... 10 bottles of Canola oil... and 500lb of pulses!

That would put the prices through the roof... consumer driven... pure supply and demand!

Fransisco... put that into a spread sheet...and lets see how many years it would take to meet this demand!