Food Prices, Riots, And Starvation

Posted: January 13, 2011 in Current Events, Financial Survival

We have been discussing inflation for months on items we need such as food, energy, healthcare and education.  Around the world riots are happening and it’s about the cost of food.  We now seeing riots in  China, India, Bangladesh, Tunisia and Algeria.  These riots around the world will continue and eventually we will see the same riots in the United States.  Not only has the harvest from last year been revised downward according the Department of Agriculture but we also have currency war that is intensifying.  Other factors that add fuel to the fire include global food trade and government subsidies.

In the US we are starting to see inflation however we haven’t seen anything yet.  Much of the inflation we have seen has not been passed onto the consumer, that will change this year.  Prices will soar.  Keep an eye on the packaging as well, many companies change the size of their portions but charge the same price, this gives consumers the illusion that inflation is tamed. 

According to a just released report from the Department of Agriculture, grain supplies will be tight.

The USDA again revised downward its estimate for the size of last fall’s corn and soybean harvest in the U.S. It made a surprise cut to its estimates for the size of the soybean crop, to 3.33 billion bushels from 3.38 billion. End-of-season inventories of corn, already expected to be at a 15-year low, were cut by more than 10% to 745 million bushels.

The USDA’s crop report for the month of January is one of the most hotly anticipated of the year. The fact that the agency took its scythe to previous forecasts is yet more confirmation that world supplies are approaching precariously low levels.

The devastating drought and wildfires in Russia in the summer of 2010 were a shock from which grain markets haven’t recovered. Crops are hurting from a drought in Argentina, dryness in the U.S. Plains and torrential rains in Australia. …

Corn and soybean futures surged the most they’re allowed to per exchange limits, hitting fresh two-year highs. Corn for March delivery, the most-active contract, recently traded up 27¼ cents, or 4.5% higher, while soybean futures for January delivery, traded up 66¼ cents, or 4.9% higher. Corn and soybeans hit a trading limit of 30 cents and 70 cents, respectively, earlier in the day on the Chicago Board of Trade.

In its first estimate of how much winter wheat was sown this fall, the USDA said 41 million acres were planted. This was in line with expectations, but still remains below 2008 levels. Wheat prices jumped almost 4%.

It would not be a bad idea to begin storing foods you regularly eat and set your household up on a rotation system.  Prices are going much higher

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