A posting about food prices in the Evironment Forum

[eleny]

Food prices will be going up again for staples.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=115x144425

[NashVegas]

1. I Wonder

How much of this is specifically because of commodities trading and investors who are desperately creating the next bubble, in search of 15% + profits?

I'm of the opinion that, at this time, if a link can be proven, that commodity traders must show proof of a distribution network.

[Why Syzygy]

2. You are probably right.

What is "proof of a distribution network"? I'm a market dummy.

[NashVegas]

4. A Way to Get the Goods to Market

Contracts with warehouses, transportation, etc.

couple of articles to read:

http://www.nytimes.com/2008/04/22/business/22commodity.html

http://community.investopedia.com/news/IA/2008/ConAgra_Exits_Commodities_Trading_At_The_Perfect_Time.aspx

[eleny]

6. I recently read Gasparino's book, Blood on the Street

And I wouldn't put anything past the traders and investors. There can be very little conscience in that sector of humanity.

[Stinky The Clown]

8. The answer to your speculation is 'yes' ..... speculators ..... they're also buying oil

And we're paying for their profits.

[Why Syzygy]

3. I have a LOT of thoughts on this issue.

The one that hits hardest is, How the Hell are we supposed to fight a war if we can't feed people grains.

[eleny]

5. Isn't that the truth

[Warpy]

7. The spike now is being created mostly by hoarding

that started when increased fuel prices started to be felt in the supermarket.

Sadly, most of that hoarded food is going to feed the bugs because most of it is not going to be frozen longterm.

[Tab]

9. Yesterday I read

that Sam's Club was limiting sales of rice to individuals (to protect their supply for their business customers). Tracing it back, this is because rice-producing nations like China and whatever have limited their exports to protect their own internal supply.

And I've read that Rye flour will be more or less unavailable (or difficult to get) after June or so.

They expect the situation to "let up" somewhere in 2009.

Where the frick did this come from all of a sudden? When America itself is running shortages on rice and flour, it should be a big alarm bell. I understand if some third-world country isn't getting rice or other food staples - it's not good, but it happens from time to time - but I've not seen it here, except for WWII, and then we were self-sacrificing for the "boys over there".

Most people are ignoring it (or ignorant of it) for now, but I think this is a MAJOR red flag. If this is really happening, and going to get worse, a lot of things we take for granted are going to change.

[NashVegas]

10. On the Letting Up in 2009

ie, when we have a new, preferably Democratic president. I've heard the same thing about the mortgage crisis.

I don't each much rice and can't STAND rye, so this won't have much impact on me. It's the collateral damage I'm concerned with.

[grasswire]

11. droughts and crop failures are part of it

Australia was a big exporter of rice until its recent droughts, for example.