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234SALE

Its All To Do With The Cost Of Grain

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I have heard from sources that tomorrow at 9am Central USA time,,

That their will be the monthly report in the costs and reserves of grain.

Basically grain supplies are reducing whilst demand is increasing

Grain is expected to increase directly affecting cpi

http://www.fas.usda.gov/grain/circular/200...ainfull0607.pdf

http://www.fas.usda.gov/grain_arc.asp

Edited by 234SALE

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From report last month

European grain supplies are expected to contract even further in 2007/08, exacerbating

already tight global supplies. Very low carryin stocks and concern over crop prospects,

especially in the eastern part of the Union, have caused domestic prices to soar. With

intervention stocks for barley, wheat, and rye nearly completely depleted, the Commission is

limited in its options for trying to dampen prices and ensure domestic feed millers have

adequate supplies. As a result, the Commission may be reluctant to approve export licenses

early in the season, similar to past years when domestic supplies were tight. With crops also

shrinking in the Black Sea region, less European supplies could mean key Mediterranean

markets will have to turn more to grain suppliers outside the region. For wheat, this could

mean larger sales from the United States, where a larger crop is expected. For barley, it will

likely mean stronger sales of Australian new crop barley to markets such as Saudi Arabia.

Grain is present in many foods, how will this effect Inflation

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More worrying that our inflation are the hundreds of millions of people living in extreme poverty, spending almost all their money on imported grain. Any price hikes causes demand destruction (that's how the price mechanism works) and people starve to death that otherwise lived. I think that's a bit more serious than an extra 20p on a loaf in Tesco.

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More worrying that our inflation are the hundreds of millions of people living in extreme poverty, spending almost all their money on imported grain. Any price hikes causes demand destruction (that's how the price mechanism works) and people starve to death that otherwise lived. I think that's a bit more serious than an extra 20p on a loaf in Tesco.

Yes, I do fully understand. If you read the 39Page report it basically says all food stuffs are running out...

http://www.fao.org/newsroom/en/focus/2004/51786/index.html

I know everyone worrys about interest rate hikes, HPI, but as the doom sayers point out...

Its going to effect the poorest the most..

http://www.thehungersite.com/clickToGive/home.faces?siteId=1

Edited by 234SALE

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Yes, I do fully understand. If you read the 39Page report it basically says all food stuffs are running out...

http://www.fao.org/newsroom/en/focus/2004/51786/index.html

I know everyone worrys about interest rate hikes, HPI, but as the doom sayers point out...

Its going to effect the poorest the most..

http://www.thehungersite.com/clickToGive/home.faces?siteId=1

Right Said Fred mentioned this quality microloans site: http://www.kiva.org where you can loan money to set up a farm or buy a cow - with a payback rate of over 97% you even get your money back.

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More worrying that our inflation are the hundreds of millions of people living in extreme poverty, spending almost all their money on imported grain. Any price hikes causes demand destruction (that's how the price mechanism works) and people starve to death that otherwise lived. I think that's a bit more serious than an extra 20p on a loaf in Tesco.

The current 'dash for ethanol' is making the situation worse. Reports I've seen state that the corn used to provide 1 tank filling in an SUV could (and should) feed 1 person for an entire year.

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More worrying that our inflation are the hundreds of millions of people living in extreme poverty, spending almost all their money on imported grain. Any price hikes causes demand destruction (that's how the price mechanism works) and people starve to death that otherwise lived. I think that's a bit more serious than an extra 20p on a loaf in Tesco.

So we get cheaper cleaner fuel AND all the nu-labour voting scabs get wasted. The down side is???

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Yes, I do fully understand. If you read the 39Page report it basically says all food stuffs are running out...

That's what you get when you turn half of it into petrol. Nice one environmentalists.

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Basically the way I see it,

We have been stealing resources that took millions of years to form as deposits on this planet...

Now these are runing out, our population is too great to maintain our current way of life..

If you take the energy provided by the sun and possible renables we probably don't have enough to continue this level of existance.

Earth hits the fan........

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That's what you get when you turn half of it into petrol. Nice one environmentalists.

(1) US Gov. picked this option for energy security and replacement farm subsidy purposes, primarily.

(2) Any true tree-hugger has been trying to point out the downsides of crop ethanol for years (excessive water demand, food crop replacement, high fuel/fertiliser use etc.), which can be mitigated by careful planning (somewhat) but haven't been as the eco-costs are of no real consequence to US Gov. anyway (see point 1, above).

Neat!

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Basically the way I see it,

We have been stealing resources that took millions of years to form as deposits on this planet...

Now these are runing out, our population is too great to maintain our current way of life..

If you take the energy provided by the sun and possible renables we probably don't have enough to continue this level of existance.

Earth hits the fan........

I have a copy of 'Overshoot' by William Catton Jr.; highly recommended.

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http://www.abc.net.au/rural/news/content/2007/s1978020.htm

US agriculture officials have now raised their 2007-08 wheat price forecast to more than $221 a tonne or in American terms, $5 a bushel.

Officials have also raised their forecast of the Australian crop.

The US wheat price forecast just keeps going up and up, amid tight US and global supplies.

and

http://www.bloomberg.com/apps/news?pid=206...refer=australia

July 11 (Bloomberg) -- Wheat rose in Chicago to the highest price this month on speculation the U.S. harvest will be smaller than the government forecast in June, after heavy rains damaged the winter crop

http://www.telegraph.co.uk/news/main.jhtml...3/nbread113.xml

"Bread prices 'are likely to rise by 5p"

Edited by Ash4781

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Lets talk peak grain production because it takes so much oil to produce grain then any truth in one must mean truth in the other and fuel crops will take the place of grain fields so adding to the problom

how much of our grain comes from terminator seeds i wonder and why would anyone produce such seed.

are we about to see the same policies applied to food as oil and make no mistake, peak oil or not the price is being played with.

a sack of rice will last years and could keep you alive for months and yet look at how cheap it is just now

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http://www.telegraph.co.uk/news/main.jhtml...3/nbread113.xml

"Bread prices 'are likely to rise by 5p"

So that would be about a 10% INCREASE.

Hawks frm the BOE that do read this website for your masters.... CPI will be well above your target this month...

Suggest counter spin now...........

P.S Betfair 15.5 to 1 for a 0.25 increae... 0 change nearly odds on....

Fancy a 1 pound bet to make 15 pounds,,, lovely

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My grandad had a farm,

he had two boys and a daughter, the two sons got the farm, one son had a daughter who is now a librarian, never been on tractor in her life.

The other son had a son he's in London now playing property.

I am the son of the daughter - I am not involved.

The brothers are both over 65. The farm is dying, two pensioners running it one had a heart attack and ones diabetic.

Farming has been bled white in the last 20 years, suicides are the norm and it's drowning in regulation.

But its needed primary production, this country only produces 60% of its food.

A major economic depression is needed to get the labour where it's productive - the farm is one place for sure.

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Ethanol is being added to petrol, or I should say "gas", to replace the octane improver MTBE which is added about 10% by volume. MTBE has a bad environmental problem: it contaminates groundwater. The US government is phasing out it's future use.

The snag with ethanol is that the US cannot produce enough to replace all the MTBE (so I have heard). Corn grown for ethanol is subsidised (as usual, the big US farmers win out on that one), and export corn has disappeared from the market, creating severe problems in countries that used to rely on US corn, like Mexico. This has a knock-on effect on the prices of other cereals worldwide.

Using ethanol is particularly dumb. It barely recovers the energy cost of making it, if that, with some claiming it requires 30% more energy to produce than the finished product provides, unlike bio-diesel from canola (rape) which has anything from 2:1 to 7:1 EROIE, if you can trust those reporting.

To tout ethanol as a green fuel is a disgrace!

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