Wheat Price Surges Above $10 for First Time on Supply Concerns

[swag]

Source: Bloomberg

Dec. 17 (Bloomberg) -- Wheat rose above $10 a bushel for the first time, bolstering prices for other grains and oilseeds and stoking inflation.

Chicago wheat futures rose as much as 30 cents, or 3.1 percent, to $10.095 as dry weather threatened crops in Argentina, adding to concern the world's farmers may not be able to grow enough to meet demand for bread, pasta and livestock feed. Rice also jumped to a record, while soybeans reached the highest in 34 years and corn was its costliest in nine months.

Kellogg Co., the maker of Frosted Mini-Wheats cereal and Eggo waffles, and General Mills Inc., the maker of Cheerios cereal, already have raised prices. Kikkoman Corp., Japan's biggest maker of soy sauce, is planning its first price increase in 18 years, while Sara Lee Corp. said Dec. 13 it will increase bread prices for a second time since September.

``We are seeing a broad-based increase in cost pressures,'' Brian Redican, senior economist at Macquarie Group Ltd., said in an interview from Sydney today. ``The increase in soft commodity prices is really the next stage in that process.''



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aW1...

[glowing]

1. Yeah, keep on subsidizing ethanol fuel so the piggy-piggy's can still

reap the money in another form (ethanol produces less miles per gallon). The by-product results in nutritional staples increasing in cost.. Its a wonderful thing that everything seems to have some form of corn in (high fructosed corn syrup)

[swag]

2. Quite a dilemma for the omnivore.

[glowing]

7. Ethanol is just not a clean fuel.. and competition between consuming

for food and consuming for fuel will eventually drive the prices up astronomically.. Also, ethanol producing plants are not good for the environment. Most communities fight like hell not to have one in their backyard, unless of course, they are economically depressed and need the money. Real alternatives need to on the frontline... Better public transportation, less individual cars (which means less money for car business on a whole), exploring the electric car and using solar energy to recharge the battery. Or the hydgrogen car.. or at least using it for larger vehicles like buses and trucks... Real options that need the subsidies, not oil companies.

[bagrman]

3. My Uncle owns a Farm supply store, in Vandalia Illinois , His comment on this next years

winter wheat crop was that "there won't be one if there isn't some moisture this fall to germinate the crop." Well it's been pretty dry this fall, and it's only going to frustrate things down the line.

Latr

[aquart]

4. Oh, shit.

[BadgerKid]

5. Dietary silver lining?

Maybe portion sizes will go down, leading to less obesity.

[Zhade]

6. Yep - when millions die, there'll be more food for the survivors!

(I don't really mean that. Well, I don't mean it to sound like a GOOD thing, anyway.)

[pipoman]

8. Maybe the market will maintain prices

so subsidies will not kick in thus saving tax dollars.

"while Sara Lee Corp. said Dec. 13 it will increase bread prices for a second time since September."

Since the takeover of the bread market by this corporate monstrosity (mostly because of Wal-Mart selling Scary Lee exclusively) bread prices have steadily gone up. Commercially produced bread isn't the cheap staple it used to be. Also has anyone noticed that Scary Lee bread doesn't Mold? Chemicals = unlimited shelf life, no thanks.

We make our own bread when ever possible using locally milled flour (we live in the wheat belt). The best is Hudson Cream Flour. The cost per loaf hasn't changed more than a few cents for years.