Monday, July 09, 2012

Are you Ready for Higher Food Prices Again? It is Coming!

Combining the heat wave, global demand and the fact that the U.S. supplies are down, a perfect storm is created for rising prices. According to the U.S. Department of Agriculture stockpiles for corn are at a 1973 level. Corn impacts all grain prices as well.

“Tumbling yields will combine with the greatest-ever global demand to leave U.S. stockpiles on Sept. 1, 2013, at 1.216 billion bushels (30.89 million metric tons), according to the average of 31 analyst estimates compiled by Bloomberg. That’s 35 percent below the U.S. Department of Agriculture’s June 12 forecast, implying the biggest reduction since at least 1973. The USDA updates its harvest and inventory estimates July 11.”

Plus the same article also pointed out that “Prices surged 37 percent in three weeks…”

http://www.businessweek.com/news/2012-07-08/u-dot-s-dot-corn-growers-farming-in-hell-as-heat-spreads-commodities

Prices just rose on the Commodities Market because of the drought.

http://seekingalpha.com/article/707971-midwest-drought-sends-grain-prices-soaring-and-a-look-at-other-commodities

What does this say for my home?

It tells me that I need to think about building up my food storage. This is the year I am doing a major shake out in the home. Looking at my short-term and long-term food storage is part of the goals we have as a home.

You might do the same because next year the prices of food will be even higher.  Judy

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