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As Brent Front Month Contract Rolls To April, Price Hits $103.75, Wheat Highest Since 2008
As more and more contracts roll to an April front month, the entire commodities curve is going parabolic.
And for purists, here is the April Brent-April WTI spread. Nothing to rejoice here either.
Too bad wheat isn't rolling anywhere... yet. It just keeps going higher, and has just hit the highest level since 2008.
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ah, but none of this is going to filter thru to US consumers....
BECAUSE THERE IS NO INFLATION
Nor will it filter to the Egyptian consumer because they have thrown out their President and therefore all foodstuff prices will quickly fall.
Useless Liquid - I mean you can't drink it can you ?
That Brent stuff tastes particularly bad.
Have you never tried Oil on the rocks? Louisiana folk love it.
Nah I prefer WTI - nice a sweet , a bit like Murphys in that regard.
Because it's flammable it has pretty fair array of uses.
Inflammable.
"Inflammable" predates "flammable" by about 200 years, but both mean the same thing--combustible.
Fuel trucks say "flammable" out of concern that the prefix "in-" may be interpreted negatively, i.e, that it is not flammable.
Had to quit crude, gives me gas...
Now Guiness, that's a liquid. I wish I had a 50 gallon drum full of the stuff....hhhmmm Guiness. I've personally helped increase Irish liquid exports countless dollars.
Diageo will gladly sell it to you. They could use a customer at the moment, the Irish being broke and all.
Guiness looks and pours a lot like motor oil...
There will be a major spike in the price of grains/rice when they realize the winter wheat is no more...
Terry Duffy(CME head) and Olivier de Schutter, UN rapporteur on the Right to Food, have a little chat about why commodity prices are so high. The long and the short of it? Speculators provide liquidity, probably not worth watching really.
http://www.bbc.co.uk/iplayer/episode/b00ymgb3/HARDtalk_Terry_Duffy_Olivier_de_Schutter/
Panic stockpiling time now, then there wont be any to buy at any price.
Message from your government: slim down and buy Chevy Volt.
The gov is trying to help you by giving an economic incentive to lose weight and switch to electric cars.
It's a beautiful plan! And cheaper than educating
Cut off the 43 million food stamps.
Yeah, that's always smart. Get 43 million people hungry to lower the demand for food. Funny, oil exporting countries are quickly trying to increase subsidies to their populations, which are irrelevant to their oil funded economy, and the US, where the people have become as irrelevant but which can't do the same since it only grows paper money and debt.
>>>Yeah, that's always smart. Get 43 million people hungry to lower the demand for food.<<<
No food stamps?
They can eat the rich.
And when they run out, I hear from my Scottish friend that sheep dog makes a good meal in tough times (because you've already eaten the sheep and have no use for the dog any longer.)
Mmmm...Dog. It's what's for dinner.
Google "how to cook dog"
Scotts and Koreans already know what to do.
New Korean cookbook: 101 ways to wok your dog.
Brent is the new benchmark, WTI is dead. I suspect some switching going on too.
the bernank can fix this.
Yea the Bernanks brother has a kick ass set of TV repair tools!
Well SheepDog I'll tell you, central banking is not a sport, it's a way of life, you know, a hobby. It's a way of looking at that yield curve and saying, "Hey bud, let's party!"
doesn't anybody knock? I'm trying to look at SEC approved porn ova heya.
It is staggering to witness the price increases I am seeing in the grocery store over the last 4 or 5 weeks. At least where I am they are being very clever in pushing them through. They are holding "buy 1, get 1 free" sales. During the B1G1 "event" the price is immediately jacked through the roof. Once the sale is gone at the end of the week, the new price stands.
For example, I talked last week about Progresso soup for $1.89 per can in Janurary. The grocery store just had a B1G1 sale on Progresso, but the "regular price was jacked to $2.49 per can. So for the event you were getting 2 cans for $2.49. Now the sale is over and the price remains at $2.49 where 2 weeks ago it was $1.89, an increase of 32% ($0.60 increase from $1.89).
They have been doing this for the last 5 weeks on everything under the sun. Canned goods, packaged goods, cookies, crackers, laundry detergent.....everything.
Here in the UK, they employ similar tricks. Cost of milk in Sainsbury's for 10 weeks in a row: £x.xx. Then, for one week they have a "10% off" offer, but it has only actually dropped 5%, the "regular price" has suddenly increased by 5%.
With the items that aren't being jacked through the "buy one, get one free" game, the prices are going up by 5% per week. I talked with the store manager Saturday morning, who has been at this store for 15 years and in the business for over 40, and he tells me he's never seen anything like this since the late 70's when inflation was raging.
But of course there is no inflation. Repeat after me. THERE IS NO INFLATION.
I can't say I see it on a weekly basis, but it does noticably increase over here, unless you're only plugged into watching X-factor, Britain's got Talent, or reading mindless crap about celebrities (unfortunately, this describes about 90% of the population).
Based upon conversations I'm having with many people around the USA some regions have been experiencing a steady rise over the last 6 months while other regions such as mine have been slower to experience increases until now. It seems my region is rushing to catch up.
fyi - pump gas went up $.20 2 days ago in northern Arizona
i went to whole pay check yesterday, probably haven't gone grocery shopping for a month or driven my car for a month. i was outraged. i buy my favorite chicken fillet done with breaded stuff. the damn girl put all of my 5 rather large pieces in the same brown paper wrapping. but it must of ripped on her, so she tapes it with white duct tape. i go back to pick it up off the counter and put it into my bags. it breaks apart. i pick it up and asks her to rewrap them. oh know she wants to retape the brown bag. i told her i wanted them repackage in three different paper. she was so fucking reluctant to do this. she probably never thought she would be working behind a counter wrapping and packaging food. she didn't have a clue. the total amount for these 5 chicken pieces were over $20 bucks. they are just idiots. this is only one fifth of the hour of shopping at the stuupid headquarters of america.
Hi Cog Dis, what area of the country are you seeing this, pls?
Mid Atlantic
Been seeing that as well.
JD Hot Sausage was 2 for 5 bucks 2 weeks ago. Now? 5 dollars a pound for SAUSAGE.
Coffee? 10 bucks for 3 pounds of folgers at Costco. Everywhere else? Insane price levels.
As far as Im concerned take several hundred bucks and buy local groceries. That investment will pay off better than the paper stocks and quite possibly better than some PM's this year.
My wife and I were just talking last night about the sudden explosion of b1g1 sales at our local grocery store and how the prices were jacked up on these items. I am going to have to watch the prices once the sale is over. Thanks for the info.
Prices have really moved. I shop mostly at the ethnic shops in my area and I've been watching the relentless move up in the price of meat. Even on sale, the price of lower quality cuts is up 25% from the fall. Veggies have wild swings, but I took to cooking with what was on sale so the damage was mitigated for me.
Get weird looks when I see a sale at a mainline grocery store and go in to buy 30lbs of loss leader priced steak, and nothing else. That was a good month, wish they would run that sale again.
BTFD, My friend.
BTFD?
Heluva Good dip up 28% after a Buy One, Get One Free sale.
This term called parabolic is confusing to me. All I know is markets either go up like NFLX or up like GM.
Harvey Organ had a couple of links to articles, detailing why the WTI is becoming increasingly irrelevant, and Brent reflects the true price of oil:
Yep, saw those excellent articles yesterday and switched from WTI to Brent this morning.
The smart guys are now running their cars on WTIC and giving Brent a miss. Shop around - that's the way to beat this inflation.
Hmmm.. yeah, unfortunately I don't have storage facility (or refinery potential) to take delivery of a futures contract of WTI. And even if I did, I fear the transportation costs to the UK might outweigh any possible savings.
So I guess us Brits are fooked.
The Brent price is manipulated to a large degree:
http://is.gd/9enD4z
Watch the first Chris Cook @ Max Keiser video.
Brent is a blow- off in my opinion as price is too high for oil- using businesses to make a profit.
Average price in 2008 was $97 per barrel in a world with far greater amounts of available credit. The more time @ $90 the more damage is done to productivity and the greater likelihood of an oil shock.
EIA Brent average price for the past six months is $85.10. The world economy is already in the danger zone ...
coal is smokin this morning
Very funny.
but but but, the wall street journal is reporting that the economy is growing faster now than it has in 8 years.
http://online.wsj.com/article/SB1000142405274870384300457613889415603634...
The stock, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.
The markets will fall only when the banksters have eliminated all the short positions and only they themselves have positioned themselves to profit when the market falls
OR
When an unexpected world event catches the banksters with their pants down and the softwares they use to rig the markets go berserk beyond their control.
http://www.marketoracle.co.uk/Article24581.html
It will be fun to watch them sell these piled up perishable commodities, when no one can buy them.
The real problem here with these bubble ramps in these markets is the damage to the actual producers. Couple that with what the weather is doing, and the future looks a titch grim.
Can't eat them, then burn them for fuel.
Watch the sky, any Black Swan weather event will send prices to the moon ( i.e. the big freeze in Mexico during super bowl week wiped out the spring greens and vegitables) Such a Swan event will not only raise prices, it will result in starvation for many, many people. Hungry people do crazy things!
Just in case anyone gets conspiracy thoughts, the CPI and PPI both use gasoline as a determinant, not WTI, so the Brent reality that is paid by refineries to make gasoline will be captured and reflected in the CPI.
The US burns about 15 mbpd of imported oil, of its 19-20 mbpd consumption, so while tht 15 is not Brent, its price is far more decisive than WTI in all that matters.
The Bernank said energy can and should be ignored by the elite. There is no inflation, dammit!
Grocery prices are high, what will this do to restaurants?
I would not want to be in the restaurant business right now. I can only cut staff pay by so much and the high gas prices are keeping customers eating home-made potato soup.
As restaurants fail more people will be looking for work at the same time a source of low- wage jobs will vanish.
I would start looking for restaurant bankruptcies along with more stress in grocery chains. A&P is simply the latest and there will be more joining them.
Well if last nites Outback dinner is any indication, way smaller portions of crappier cuts of meat is apparently 1 effect on restaurants. I could have gotten better at Denny's.
Oh thank God, it's not just me. I only eat out maybe once a month and I swear to God the portions always seem to be getting smaller and smaller, and prices rising. Friends made fun of me when I started asking the waitress about the price increases.
Maybe it's for the best if portions shrink somewhat. American portion sizes are pretty out of control. Yesterday I ate out for brunch, and table next to me left over more food than they ate. Whole platefulls of toast and home fries thrown away.
Smaller portions are fine, but I don't want them with rising prices. As for people leaving food, I'll argue two points. 1. Americans are spoiled and haven't seen real hardship. That will change in the coming years. Coming from a poor family, as a kid I thought it was normal to dogie bag everything, including the bread on the table. 2. Some of the crap that is served is hardly food. GMO potatoes fried in random questionable oil is not something I care to eat again on a regular basis.
But like I said I hardly eat out. Only when friends drag me along or my parents insist on taking me when I visit them.
i never go out to eat, hardly ever did. they put too much salt in food. i reuse all of my plastic bags. it was a farce growing up with rich people who throw everything away. my mom recycled all plastic storage bags, and rewashed aluminum foil. this banksta son, forbid me to do this when i was living with him. i don't do this cause i am cheap. i have been doing this my whole life. reuse food that i cook in different ways. i really like twice baked potatoes. they freeze really well†
I agree with you ..but Whole Foods..the fancy shiney apple place has a good quarter...go figure...I guess the rich can absorb the prices...
listen whole foods needs to be shown as a crap corporation. they pay all the white young recently BA graduates $10 an hour. these woman don't know how to use a cash register or handle the food at the same time. they don't have baggers, and the ones that they do never ever took bagging 101. i just was left screaming at these woman, putting two rather large pineapples on top of perishables. put my strawberries on the bottom and proceeded to put heavy other food stuff on top. i couldn't help myself getting really upset. then these little spip squeaks, are laughing at me standing around. no one complains about service. i yell out we need another cash register to open up. all these dumb down american elite green beans are looking at me, repulsed i would speak out. i yelled at customer service for having a god damn out side large gas heater, on an outdoor eating area. this place makes me sick. rich people have their heads up their collective behinds. oh it is ok if whole foods wants to heat the outdoors. where can i exposed these crooks?
What do you expect? Boulder is Colorado's little piece of California.
At some point they will be passing on the cost increases. I think the weak hands get clobbered early trying to avoid alienation of the customer base (or being forced to do so). I suspect that the ball is starting to roll now and once it really gets moving, things are going to get funny quick. I would also think that this upcoming shift is going to be very delicate (riding the margins) and more failures might be coming from those who play it wrong.
Jim Rogers was 100% confident this would happen. I think his 100% and Ben's 100% mean slightly different things.
...and Marc Faber is 100% convinved of hyperinflation in the US.
You have effectively overwhelmed this comments section thank you.
Oh, you're back. So good of you to arrive and push the IQ of the average poster downwards.
Anyway, I guess with you now online, someone has a break.
104.20
Just watch this Bernanke commercial.
http://www.youtube.com/watch?v=864VY2jux7U
WTI is manipulated. Brent reflects true (or very near true)oil price. Check RBOB gas prices compared to oil prices going back 3 or so years. Or, if you like, take 65% of Brent price and 35% of WTI and get the real price. There has never been a price divergence this large between Brent and WTI. As WTI is 'higher grade', it tells me that WTI is being manipulated. Oh!....wait.....stats, prices and such are NEVER manipulated in our markets.....sorry, my mistake. ---The chickens will come home to roost.
This is a follow on to Cog Diss comment above, cannot get it moved up there!
thanks for commenting about the price raise scam; I see so much of the buy 2 get 1 free, Ben and Jerry's, Coke has something like buy 3 get 1 free, some of the more expensive potato chips. I don't see that on the organic foods, mostly empty calorie stuff.
I have been commenting to friends how boxes of cereal have been downsizing/raise price .. repeat since 2007.
I work for a large food broker in North America and that is how most price increases are being handled right now. Have a BOGO and raise the per unit price. Seeing it on 10/10$ as well. We are seeing daily price increase notifications from packeged food producers we deal with. Going to get insanely expensive to eat this summer.
Sigh.
Neither is "manipulated".
WTI only pumps a few hundred thousand barrels a day now. It's depleted. Texas pumps a couple of million barrels a day, but not much of it is WTI.
Brent is not the only decisive mix. Tapis is pricey too. Most oil mixes are pricey. Look at
http://www.upstreamonline.com/marketdata/marketdata.htm
for spot prices. WTI is absurd. It is the only oil type among all the mixes of the world priced under $90.
Study the figure at the top of this link..
http://www.onlineopinion.com.au/view.asp?article=11610
It will provide a lot of answers.
I guess we all picked the right year to give up eating.
Diet, bitchez!
WTI is not manipulated, the overseas producers are moving to the ASCI pricing mechanism and that is what constitutes a generic brent price. There is no reason for those countries to use the WTI price anymore=why should they when they trade their product on the other side of the planet. This also brings into the equation and this is important- OIL PRICED BY AMERICA no longer means diddly as the world decouples from NYMEX pricing regime.
As for the fallacy of WTI being the sweeter crude is totally not true as Mars front month API is 28.9-poseidon API is 30.9-southern green canyan is 30.9= high sulpher content.
ASCI Tengiz API front month 46.5- Azeri light API 35-Iran heavy API 30.7
What does it all mean as countries moving to the ASCI pricing mechanism? more nails in the U.S. coffin. Get ready to rumble.
Next step: Brent priced in GBP, Euro, and/or gold on ICE.
If oil really costs $150 - $200bbl to produce... becuase conventional / lite sweet crude resources are depleted... then it makes or has made sense that shipping would be the first to raise prices / fail due to the lie being lived by all blindly.
Falling is Great! it is the landing that sucks.
http://www.youtube.com/watch?v=vPLrqKrnYts&feature=
when i remember at the end of the tech bubble. forgot who recommended Sysco over Cisco. he had it right in the end.
time to convert to natgas... the frackin will destroy the environment and water but oil is going to be insane come next winter..
my pellet stove can only do so much... can i just fill my entire attic will insulation??
Don't bother. It's not going to matter.