Continue reading Milk Futures Climb 55% over the Past Year; Will Prices Drop?

Milk Futures Climb 55% over the Past Year; Will Prices Drop? originally appeared on BloggingStocks on Mon, 14 Mar 2011 09:30:00 EST. Please see our terms for use of feeds.

There's a catch-22 in world food supply and demand. The demand for food from developing nations is putting pressure on supplies across the globe. But governments are getting increasingly nervous and worried about unrest. To try and preempt civil disturbances, governments have stepped in and are buying food staples. This government buying is driving prices still higher.

Algeria and Saudi Arabia have announced extraordinary purchases of wheat, driving prices to a two and a half year high. Last week Algeria bought 600,000 tons of wheat, much more than usual. Saudi Arabia announced plans to double the size of its wheat stockpile.

Continue reading Governments Stockpile Food to Avoid Panic Buying, Social Unrest

Governments Stockpile Food to Avoid Panic Buying, Social Unrest originally appeared on BloggingStocks on Sun, 06 Feb 2011 13:40:00 EST. Please see our terms for use of feeds.

Continue reading Corn Prices Spike on Heat Wave in Argentina

Corn Prices Spike on Heat Wave in Argentina originally appeared on BloggingStocks on Tue, 11 Jan 2011 11:30:00 EST. Please see our terms for use of feeds.

The next year may bring higher global grain prices. Several factors are coming together to create supply-demand shortages. Let's first look at the demand side.

Globally, the demand for grains, both feed and consumer products, is increasing rapidly. Developing countries are coming out of the recession and their people are demanding more food products. Food prices are rising across the globe. A Wall Street Journal (subscription required) article states that the United Nations Food and Agriculture Organization said its Food Price Index rose 3.7% to 205 -- 44 points in November -- the fifth straight monthly increase. This takes the index to just 8 points below its peak in June 2008.

Continue reading Global Grain Prices Likely to Rise in 2011

Global Grain Prices Likely to Rise in 2011 originally appeared on BloggingStocks on Thu, 02 Dec 2010 11:30:00 EST. Please see our terms for use of feeds.

Reuters quoted Federal Reserve Chairman Ben Bernanke as saying: "We're not in the business of trying to create inflation. Our purpose is to provide additional stimulus to help the economy recover and to avoid potentially additional disinflation, which I think we'll all agree could also be worrisome."

Bernanke claims that inflation is below the Fed's 2% target. That's hogwash! Sure if you use the "core" CPI, which leaves out food and energy, that may be the case. Not to worry.

Continue reading Bernanke Says He Does Not Want to Create Inflation

Bernanke Says He Does Not Want to Create Inflation originally appeared on BloggingStocks on Sun, 07 Nov 2010 11:10:00 EST. Please see our terms for use of feeds.

What is happening in the cattle market is directly affecting food prices at your local supermarket. Here are some upsetting numbers.

• Global meat prices have hit a 20-year high.
• The UN Food & Agriculture Organization's index was the highest in August since 1990.
• Live cattle futures hit $1 per pound, the highest in 22 months.
• Australian lamb prices have risen above $5.50 a kilo, the highest since 1973-74.
• And this is the big whopper: Pork bellies, which are used for bacon, are at a record $1.50 per pound.
• The higher cost of feed is driving up prices.

Continue reading Higher Meat Prices Are Fueling Food Inflation

Higher Meat Prices Are Fueling Food Inflation originally appeared on BloggingStocks on Thu, 02 Sep 2010 12:00:00 EST. Please see our terms for use of feeds.

The U.S. enjoys a sweet spot when it comes to food production. We not only are able to supply our own needs but export are large quantity of grains throughout the world.

India, on the other hand is a net importer of basic food stuffs. As a consequence, India's wholesale food inflation rate has soared to 17.4% in the week ended February 13. This is after a rise of 17.9% the previous week.

Continue reading India's Food Inflation Rate Soars to over 17% per Week

India's Food Inflation Rate Soars to over 17% per Week originally appeared on BloggingStocks on Mon, 01 Mar 2010 13:30:00 EST. Please see our terms for use of feeds.

The years 1997-2007 saw a steady rise in agricultural commodity prices with a sharp spike last year. This trend is likely to continue over the next 10 years with prices rising 10-30%.

The Food and Agriculture Organization (FAO) of the United nations is forecasting slightly lower prices this year due to the weakness in the general economy.

Continue reading Will the rise in food commodity prices continue?

Will the rise in food commodity prices continue? originally appeared on BloggingStocks on Wed, 17 Jun 2009 15:30:00 EST. Please see our terms for use of feeds.

Nevertheless, the government says "not to worry about inflation." Well if you look more closely you'll find that gas prices actually rose 3.5% in May with crude oil prices trading near $72.00 per barrel.

Continue reading CPI rose only 0.1% in May. Is inflation dead?

CPI rose only 0.1% in May. Is inflation dead? originally appeared on BloggingStocks on Wed, 17 Jun 2009 13:50:00 EST. Please see our terms for use of feeds.

This post is part of AOL Money & Finance's Best & Worst in Money 2008 feature.

Consumers took it in the chin so many times this year, it's surprising many of us are still standing. Consumer credit for student loans, mortgages, car loans and just about everything else dried up completely by October. Oil prices soared, drained our pocketbooks, and then dropped like a stone after doing the damage. Food prices continue to soar as the prices for our homes and the value of our retirement funds plummet. So how does one decide, which is the most disturbing consumer trend? Let's look at our top four picks, presented in alphabetical order.

Americans with good credit struggling to get loans at favorable rates
While rates are starting to come down thanks to the latest bailout by the Fed, good deals are hard to find. Most banks are hoarding their cash and only lending it out to those with credit scores over 760. Even then, rates are not that favorable. You can only think about applying for a mortgage or equity line if you have at least 90 percent equity in a home that has probably lost value and, in most cases, you must have 80 percent equity to get a home loan. How can the U.S. stop the downward spiral in home values until credit is available for qualified buyers?

Continue reading Best & Worst in Money 2008: Most disturbing consumer trend

Best & Worst in Money 2008: Most disturbing consumer trend originally appeared on BloggingStocks on Sat, 06 Dec 2008 18:40:00 EST. Please see our terms for use of feeds.

You might think that since consumer prices have tumbled by near record percentages that this might lead to lower food prices. But much of that consumer price decline is attributable to lower energy prices -- after all oil peaked at $147 a barrel in July only to fall 63.5% to $53.63 yesterday.

Why won't food prices follow oil down? Many food producers panicked as corn and wheat prices peaked this summer -- locking in long term supply contracts at top prices. For instance, corn, which usually trades at $2 or $3 a bushel, pealed at $8 a bushel in June.

Although prices have since dropped to $3.50 a bushel, some food manufacturers locked in prices for corn and other commodities in the spring and summer, fearing that prices could go even higher. The result is that producers will pass on those higher costs in the form of food prices going up 7% to 9% in 2009.

Continue reading Why food prices could rise 9% in 2009 and how Kellogg could profit

Why food prices could rise 9% in 2009 and how Kellogg could profit originally appeared on BloggingStocks on Thu, 27 Nov 2008 08:41:00 EST. Please see our terms for use of feeds.

• Stick to a shopping list and shun 'impulse' buys: Wang says this is perhaps the biggest money saver. "From the moment you walk in the store, grocery stores are designed to get you to buy more items than you plan to buy," Wang said. "You are bombarded with stimuli that tempts you to spend, and it works, so stick to your list. If it's not on the list, ask yourself if you need the item, or are buying merely on impulse."

• Coupon card: Most grocery chains offer a coupon card that automatically deducts for items on sale. Sign up for one and use it. But evaluate the coupons some cash registers dispense with a sales receipt. "Ask yourself if you need it or if it is on your list," Wang said.
  

• Evaluate buying in bulk. "Buying larger sizes usually lowers cost per food purchased but ask yourself if you will need and use the item," Wang said. "If the item is not your list, don't buy it, as you could be succumbing to an impulse buy, which will drive your food bill up."

Continue reading As food prices rise 10% in a year, a few tips to lower your grocery bill

As food prices rise 10% in a year, a few tips to lower your grocery bill originally appeared on BloggingStocks on Fri, 03 Oct 2008 16:55:00 EST. Please see our terms for use of feeds.

Continue reading Is the Fed underestimating inflation by using 'core' inflation metric?

Is the Fed underestimating inflation by using 'core' inflation metric? originally appeared on BloggingStocks on Tue, 26 Aug 2008 12:55:00 EST. Please see our terms for use of feeds.

Continue reading Is inflation peaking in many parts of the world?

Is inflation peaking in many parts of the world? originally appeared on BloggingStocks on Mon, 18 Aug 2008 09:59:00 EST. Please see our terms for use of feeds.

Continue reading Europe's economy contracts -- bad news for the global economy

Europe's economy contracts -- bad news for the global economy originally appeared on BloggingStocks on Thu, 14 Aug 2008 10:55:00 EST. Please see our terms for use of feeds.

Continue reading Wholesale inflation soars on surging energy costs

Wholesale inflation soars on surging energy costs originally appeared on BloggingStocks on Tue, 15 Jul 2008 09:16:00 EST. Please see our terms for use of feeds.

Continue reading Why did the European Central Bank raise interest rates so soon?

Why did the European Central Bank raise interest rates so soon? originally appeared on BloggingStocks on Mon, 07 Jul 2008 17:57:00 EST. Please see our terms for use of feeds.

Continue reading G-8 economic powers focus on Africa aid, Iran uranium issues at summit

G-8 economic powers focus on Africa aid, Iran uranium issues at summit originally appeared on BloggingStocks on Mon, 07 Jul 2008 15:49:00 EST. Please see our terms for use of feeds.

If you believe the Dow Jones Industrial Average is a leading indicator of economic conditions six to nine months ahead, Tuesday's Dow activity is not good news.

The Dow officially entered bear market territory when a Tuesday morning decline drove the world's most followed stock market average beyond the level indicating a bear market -- down 20% from the October 9, 2007 high of 14,165.

What exactly is a 'bear market'?

Technical analysts, economists, and others argue that a 10% decline -- called a correction -- is a normal pull-back or pause in a bull market, a market where most stocks are likely to rise.

However, a 20% or greater decline is not healthy. Technical analysts say it indicates investors and traders are not simply taking short-term profits, but are concerned about the prospect for stocks in the quarters ahead -- three to nine months out -- and are exiting the market, in favor (historically) of bonds and cash.

For the above reason, 20% declines are usually interpreted by market advisors and participants as a sign that stocks are likely to be under pressure in the months ahead.

Continue reading DJIA enters bear market territory with 20% drop from October 2007

DJIA enters bear market territory with 20% drop from October 2007 originally appeared on BloggingStocks on Tue, 01 Jul 2008 12:41:00 EST. Please see our terms for use of feeds.

A ' tax dollar not well spent'

The U.S. Government (which means you, the taxpayer) heavily subsidies ethanol from corn production via payments to farmers, Langan said. "The tax dollar is not well spent, either from an environmental standpoint or an energy policy standpoint," he said.

Continue reading Economist says corn should be on your table, not in your gas tank

Economist says corn should be on your table, not in your gas tank originally appeared on BloggingStocks on Tue, 24 Jun 2008 15:30:00 EST. Please see our terms for use of feeds.