Wheat and rice prices dropping

[Quiver0f10]

http://www.bloomberg.com/apps/news?pid=20601081&sid=a0DzKg7crjes&refer=australia

 

It's so hard to know what to think. First there are shortages and prices soar, now it appears there is plenty and prices drop. :confused:

[Tammyla]

It would be so nice if they do drop and stabilize. I'm hoping, but not counting on it. Thanks for the link. I guess we'll just have to wait and see.:001_huh:

[Soph the vet]

Thanks for the info! Every time I go to buy bread I consider growing wheat:lol:! But how many bushels can less than a quarter acre produce?

[JFSinIL]

According to the news, the disaster in Myanmar destroyed a major rice-growing region, so that that country, which planned to export rice, now may not even be able to feed it own folks. I expect rice to start going back up again...

[clwcain]

A lot of the prices in the commodities markets are driven by speculation, which can distort the simple Supply & Demand calculus that we expect to govern the prices of food at the market.

 

The biggest difference, in terms of financial markets, in the last three weeks or so, is the continuing evidence that there is no recession in the US, and that the $ is getting stronger vs. other currencies for the first time in about 3 years.

 

In many and varied ways, that's having an impact on the prices you'll pay at the local grocery store, but I'll spare you the textbook explanation.

 

HTH

[Colleen]

A lot of the prices in the commodities markets are driven by speculation, which can distort the simple Supply & Demand calculus that we expect to govern the prices of food at the market.

 

Yep, speculation and media hype throw a real monkey wrench in there.