If prices rise, doesn't it put some of the marginal corn producers back
in the game?
I'm thinking about Mexico.


Eugene Coyle wrote:
A couple of thoughts.  The extreme drought in Australia has severely
impacted that large producer of wheat.  The US boom in ethanol has
driven US corn prices soaring.  And the switch to corn raised soybean
prices.
       Having acknowledged that, I would add that actual agricultural
commodity costs are not the most important component of what we call
"food" prices at the supermarket.

Gene Coyle

On Feb 17, 2008, at 9:47 PM, Sandwichman wrote:

A guy came into the food co-op today to pick up his four 25-pound
sacks of wheat. He advised me to "pick up a couple of sacks of wheat
for yourself and store them in your basement." So I took a look at
recent news stories on agricultural commodity prices. Prices are
soaring. Every kind of planted crop has increased in price by 30% to
50% over the past few months. This will have a huge impact on food
prices.

Things are going to get very interesting.

--
Sandwichman

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