kismet
April 23rd, 2008, 2:19pm
Food prices particulary corn, grain, and rice are being driven higher and higher by speculators in the Commodities market as well as demand globally by developing nations. The US is also contributing by converting more crops to corn for use as Ethanol instead of growing food. This is creating a situation of hoarding by some folks. Costco and other grocery stores in California have set limits on how much rice you can buy. I am thankful that I had already bought a large enough bag for a year. I had seen a report by CNN last week about Egyptians being in trouble w/high cost and shortage of grains for a bread they eat daily. The government was subsizing them. There are other countries that are experiencing food riots. I am 61 years old and have never seen my kids hungry. I don't ever want to but am concerned that the demands for food as for gas from global nations and our own slow-down in production of food will bring that scenario home. It is a new world we are in. Prior to this we could boycott or buy our way out of it. Not anymore. We have given up our self-reliance and have become a huge debtor nation in competion for commodities globally.
Farmers and food executives appealed fruitlessly to federal officials yesterday for regulatory steps to limit speculative buying that is helping to drive food prices higher. Meanwhile, some Americans are stocking up on staples such as rice, flour and oil in anticipation of high prices and shortages spreading from overseas.
http://washingtontimes.com/apps/pbcs.dll/article?AID=/20080423/BUSINESS/868303815/-1/RSS_FP&template=nextpage
Commodity prices across the board are at levels not experienced in many of our lifetimes," said CFTC Chairman Walter Lukken. "These price levels, along with record energy costs, have put a strain on consumers as well as many producers and commercial participants that utilize the futures markets to manage risks."
The upswing in prices has been exaggerated by the massive influx of investors and speculators seeking to profit from rising prices for corn, wheat, oil, gold and other commodities. Big Wall Street firms and hedge funds have taken huge positions in futures markets that once were dominated by relatively small operators such as farmers and grain-elevator owners.
Farmers and food executives appealed fruitlessly to federal officials yesterday for regulatory steps to limit speculative buying that is helping to drive food prices higher. Meanwhile, some Americans are stocking up on staples such as rice, flour and oil in anticipation of high prices and shortages spreading from overseas.
http://washingtontimes.com/apps/pbcs.dll/article?AID=/20080423/BUSINESS/868303815/-1/RSS_FP&template=nextpage
Commodity prices across the board are at levels not experienced in many of our lifetimes," said CFTC Chairman Walter Lukken. "These price levels, along with record energy costs, have put a strain on consumers as well as many producers and commercial participants that utilize the futures markets to manage risks."
The upswing in prices has been exaggerated by the massive influx of investors and speculators seeking to profit from rising prices for corn, wheat, oil, gold and other commodities. Big Wall Street firms and hedge funds have taken huge positions in futures markets that once were dominated by relatively small operators such as farmers and grain-elevator owners.