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View Full Version : Bloomberg News blaming supply/demand for food price escalation (It's the FED stupid!)




sofia
12-15-2009, 04:21 PM
Bloomberg is saying that food prices will rise next year due to increased demand and less meat supply due to rising cost of feed.

Ass backwards logic! Prices of corn and wheat rising due to inflation of paper money and the bio-fuels scam. The article does in fact mention ethanol.

But we cant blame the FED printing press and the governments of the world...so they will blame the coming inflation on supply/demand.....as if people suddenly are gonna get hungrier next year than they were this year!!!

http://www.bloomberg.com/apps/news?pid=20601103&sid=aubdC_KeCOvM

Dairy, Meat Prices Will Spur Food Inflation, Wells Fargo Says
Share Business ExchangeTwitterFacebook| Email | Print | A A A By Jeff Wilson

Dec. 14 (Bloomberg) -- Rising milk, beef, pork and chicken prices will double the pace of U.S. food inflation next year as livestock supplies shrink and rebounding economies boost demand, said Michael Swanson, a senior economist at Wells Fargo & Co.
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Food prices may jump as much as 6 percent in 2010, Swanson said. The U.S. Department of Agriculture on Nov. 25 forecast 3 percent to 4 percent food inflation next year, up from an estimated 1.5 percent to 2.5 percent in 2009.

Producers of cattle, hogs, dairy cows and poultry cut output after a jump in feed costs last year, reducing supplies as demand for meat is rising at home and abroad, Swanson said. Corn, the main source of animal feed, will rally next year because of record demand for grain to make ethanol, he said.

“Protein inflation is going to be much higher than people are anticipating,” Swanson said Dec. 9 in an interview from Minneapolis. “Corn is a proxy for feed costs, and right now the value of all meat and dairy output is below the price

http://www.bloomberg.com/apps/news?pid=20601103&sid=aubdC_KeCOvM

ctiger2
12-15-2009, 04:30 PM
I bet food/fuel prices won't rise in relation to real money... Silver/Gold.

Zippyjuan
12-15-2009, 05:34 PM
Meat and dairy supplies will be lower. Cattle farmers have been hurting this past year and sold off a lot of their stock to be butchered- leaving fewer for next year.
http://www.cnbc.com/id/33489541 The dairy farmers selling off led to an increased supply in beef this year but that excess will not be arround next year in all likelyhood.

Cowlesy
12-15-2009, 05:41 PM
Feeding cows has been mighty expensive. A family member of mine has 50 head (small herd relatively) and the economics of it are getting pretty taxing.

Corn prices rising due to record demand for ethanol? Can they cite a statistic that shows a record demand for it?

purplechoe
12-15-2009, 05:47 PM
Bloomberg is saying that food prices will rise next year due to increased demand and less meat supply due to rising cost of feed.

Ass backwards logic! Prices of corn and wheat rising due to inflation of paper money and the bio-fuels scam

Oh, the irony...

http://afrocityblog.files.wordpress.com/2009/04/irony.jpg