The crop prices thread

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Crop prices have been falling the last little while, wheat has lost maybe $2.50 per bushel and corn close to a dollar. Quite a few of the speculators avoiding the stock and financials problems in the states are grabbing some profit by selling commodities futures. Not that I understand much of that. There does seem agreement for the most part that prices are more likely to go up than down.

If land is taken out of set aside programs, ie land that is subject to erosion, in order to raise more crops, is society better off?

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Prices of grains for growers have fallen more again lately, but it doesn't seem to be getting back to the consumer. It seems that profit taking took place in the last weeks and things have stabilized, knock on some wood.
The traders think that high acreage and high hopes will produce a big crop this year. Keep an eye on the weather.


Demand for rice threatens global food supplies - Telegraph

[Rog]

The price of wheat has fallen 40% from a record peak set in February on expectations of a bumper harvest.

BBC NEWS | Business | Wheat prices down 40% from peak

Good news.

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I've heard in the last week of frosts in Europe,Texas, Arkansas, Russia, Here in Canada last week saw big snowfalls on the prairies and freezing temperatures combining to slow seeding. Not to be negative or anythin....

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This article is more in lines with pricing of grains than as the title suggests dealing with scarcity of food.

Is The World Running Out Of Food?

the only major failure of reason that I can see is the suggestion that GM will increase corn yields by 40%. They may do this, but the inputs to produce the extra grain will have an impact on the number of acres sown. Fertilizer potassium has gone from $500 per tonne last fall to $1300 / T this spring.

[emz]

World food prices fell in April for the first time in 15 months, according to figures from the United Nations Food and Agriculture Organisation (FAO).

BBC NEWS | Business | Global food prices fall in April

[Cricket Tragic]

Impact of Rising Food Prices

http://www.fas.usda.gov/gainfiles/200805/146294609.pdf

Over the period October 2006 to September 2007, the HICP for the EU 27 indicated a 3.3 percent increase for food, compared to a 2.2 percent increase for all items. However, looking at the period April 2007 to March 2008, the HICPs for EU-27 indicates a 6.1 percent increase for food, compared to a 3.2 percent increase for all items over the same period.

[Cricket Tragic]

World food prices set to fall from current record but will remain high, report says

World food prices set to fall from current record but will remain high, report says - International Herald Tribune

So says the OECD and the FAO

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This from the BBC

BBC NEWS | Business | Corn prices surge to record high

The price of fuel, poor weather in the States, rising demand, other grains will be on an upward trend as well.

"Corn prices surge to record high

Corn hit a record price of $6.672 a bushel for July delivery on the Chicago Board of Trade after the government cut its forecasts for the 2008 yield by 3%."

[Cricket Tragic]

Despite high wheat prices, producers not rolling in dough

Despite high wheat prices, producers not rolling in dough

Ethanol demand has not driven wheat prices to record high levels, wheat industry leaders told a Congressional subcommittee. World fundamentals, extreme market volatility and lack of technology development are to blame, they said.

In testimony before a House Small Business Committee hearing to examine food prices and small businesses, David Cleavinger, president, National Association of Wheat Growers, and Ron Suppes, chairman, U.S. Wheat Associates, said historically high wheat prices are the result of the following combination of factors:

• Strong competition for acres among crops in an environment where wheat is losing competitiveness.

• Production problems including poor weather conditions in many wheat-growing regions worldwide, including the United States, Australia and parts of Europe.

• Global consumption exceeding production seven of the last eight years.

• Increased world demand for food, especially high-quality food including wheat products, from both larger world populations and a rising middle class in developing countries.

• Domestic wheat stocks are at 60-year lows and world stocks at 30-year lows.

• A weak dollar is promoting increased exports from the United States.

• Export restrictions by some countries have curtailed the world’s access to wheat.