Wheat Futures At 29 Month High As Developing Country Demand Surges In Aftermath Of Tunisia Revolution

Tyler Durden's picture

Dow Jones reports that wheat futures just hit a 29-month highs on "strong global demand." Per the newswire, Algeria bought 800,000 tons of milling wheat, with traders estimating the nation's purchases for January at about 1.8M. Turkey and Jordan bought wheat last week after rising food prices helped fuel unrest in Tunisia. "They're saying, 'Boy we've got to eat. We don't know where wheat is going to be in a month,' says PFG Best. CBOT March wheat ends up 18 1/4c at $8.56 1/2 a bushel, while KCBT March climbs 22 1/2c to $9.40 and MGE March jumps 21c to $9.77. The chart below shows the UBS Bloomberg constant maturity Wheat index which confirms the vicious loop of what surging prices and geopolitical instability means to wheat prices. The higher the prices, the greater the scramble by developing (and soon developed) countries to acquire as much wheat as possible and hoard it, hoping to avoid Tunisia's fate, which of course will lead to even greater price surges. And all of this ignores the impact of the Goblin in Chief, whose money printing fetish has earned him, in our books, the adjective 'genocidal'. Once China figures out what is going on, and rice prices finally explode as we fully expect they will, the world will figure out just why...The only silver lining - soon farming will be the most profitable profession in the world. And as bankers only go where the money is, Bernanke's strategy may in fact lead to the first net natural outflow of bankers from Wall Street in history.

 

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
johnnymustardseed's picture

Food prices, not oil prices will kill the dollar as the reserve currency

CPL's picture

yup...god I'm going to make a fortune this summer even with a 30% crop failure rate.

 

All I can say is having productive land is grand.

 

People in general better start to take a page from the Mormon on food storage at this rate.  The hedge is going to be making sure you have 200 pounds of flour stored along with 800 pounds of beans.  Plus have a garden and some type of meat source.  I have rabbits and chickens.

Some easy guides on raising them.

cru.cahe.wsu.edu/CEPublications/eb0975/eb0975.pdf

www.ksre.ksu.edu/library/lvstk2/c547.pdf

 

Mostly it's building a hutch and feeding them.  To build a hutch.  This plan will set someone back around a weekend and $100 in materials.

www.abe.psu.edu/extension/ip/IP729-31.pdf

 

I would suggest anyone raising chickens to NOT if you don't like strong smells.  Chickens are stinky and they are dumb as a bag of rocks.

 

Calmyourself's picture

Ahh no, not unless you don't clean the coop,  A household flock of 15-20 chickens will give you plenty to eat and some to gift.  At 5.5 lbs a chicken White Leghorn you have 110 lbs of chickens, approximately two dogs in weight equivalent.  Clean the coop compost it once a month just shovel it out, no one will ever know you have chickens..  Cats can be smelly too but you can tell if the owner is worth a shit or not if you can smell them in a house.

CPL's picture

True enough.  Rabbits though breed like rabbits.

andybev01's picture

Speaking of a bag of rocks; plenty of deer up here if you know how to hunt and the big bonus, you don't have to feed the little monsters.

CPL's picture

Lots of wild turkey's around the Ottawa Valley as well.

 

Although I could see a lot of morons hunting and fishing for their first time and getting hurt.  Even experienced hunters are constantly on guard on avoiding getting clipped during hunting season.

 

Now take some guy out of the suburb, give him a 22 rifle, two hours of shooting practice and stick him in ten square miles with 4000 other suburban hunters also with the exact same ability.  All of them with the mindset that the woods are a grocery store and the fastest one to the check out wins.  I think I'll wait for off season and do a bit of blind hunting.

Let the stupid ones finished themselves off by hunting accident.  Going to have to figure out how to keep idiots off the property.  I would put the dogs out, but some twit might shoot it and eat it.

DavidC's picture

No Tyler, that can't be correct - there is no inflation.

DavidC

Salinger's picture

more video via bloomterd

Margaret Brennan shared this with viewers earlier today as her little dog had an encounter in a lux pet store in NYC

http://bit.ly/hHXKUw

Cdad's picture

Sweet!  I love trading Starvation.  I think I may be becoming a criminal syndicate Wall Street banker.  Hmmmm?

And as bankers only go where the money is, Bernanke's strategy may in fact lead to the first net natural outflow of bankers from Wall Street in history.

LOL!  But I was hoping would could have an banker outflow based on fire hoses.

Cdad's picture

Indictments would be nice...but that would require Rule of Law.  Currently, criminal syndicate Wall Street bankers live outside of the law.

I'm sure L. Blankfein and J. Dimon will suggest to M. Shapiro [as she meets with them relentlessly on the ways in which the markets can be made better]...I'm sure they will suggest to her that laws are not necessary, and criminal syndicate Wall Street bankers will do the right thing because it feels good.

Anyone hear if those meetings are close to wrapping up?  Anyone get the new updated explanation of Flash Crash? 

Mary?  Hello?

 

hambone's picture

Cdad,

+1 Sweet!  I love trading Starvation.

Many on ZH are no better than the elite they despise.  They are simply jealous and want the same for themselves.  No morals, no care for justice, nor for the future. 

In a game that is sucking the life from the world, trying to hit the next trade on Apple or whatever the fuck...people are willfully not seeing what is happening.  Step away from the casino tables and realize we are on a prison ship that will never be able to free itself from it's debt crimes...all your paper, your PM's will do you no good as the rule of law becomes only the suggestion of law or hint of law. 

tmosley's picture

You misunderstand those ZH posters then.  It's not about fucking everyone else and getting yours, it's about preserving capital so that we can rebuild after the destroyers have past away.  Most here would not emulate government manipulation of markets and their theft if given a chance (I hope).

hambone's picture

TM,

I know you, many others, and ZH itself are of similiar mindset as to your stated philosophy...but I'm also very aware of what I feel is a growing element, based on postings, that are only looking to turn the fucking on the next guy.  I felt the need to call out these POS's who truly are looking to make their money on someone elses starvation, privation, or death (Cdad, sorry to jump on your post as I know this was said in sarcasm). 

I'm just saying look at our hands and check if they are getting bloody as we trade in this criminal activity called the "market".

cossack55's picture

Pipe dream.  Bankers doing physical labor. LMFAO!  Though, talking to cucumbers would closely resemble talking to regulators. 

Yen Cross's picture

Can I please get A Bltic DRY update? XLF? Vix on SPX and DOW. 20 hummm. Yes look out for 20.

DoChenRollingBearing's picture

stockcharts.com just had the $BDI (their ticker for Baltic Dry Index) at a lowly $1292.  That is ugly!

(Paper food ETF) DBA at $33.92, up kind of big today.

Disclosure: small holder of DBA

101 years and counting's picture

1,292 was yesterday.

BDI today was 1,234.

 

DoChenRollingBearing's picture

Ugh!  Even worse...

Yes, some of stockcharts.com's info is from the previous day during trading hours, $GOLD is an example I have seen as well.

mynhair's picture

Sell grains, buy ES!  Only 5 mins left.

Internet Tough Guy's picture

Pizza dough is rising, bitchez.

wisefool's picture

pizza was invented in the Americas. As were tomatoes for the sauce.

Hephasteus's picture

Tomatoes are a nightshade vegetable. They are poisonous they need line breeding to be edible. All tomatoes in america were poisonous until replaced by beneficially poisonous varieties.

CPL's picture

Screw pizza dough...beer is rising!!

 

Should have kept the brew tanks I bought last year.  Oh well.

DoChenRollingBearing's picture

Beer prices up?  Now THAT is bad news.

RIOT!

Yen Cross's picture

Oh and the bond market. T as in 1-30. The b/c ratio is intact. look@ who the indirect bidders are. Yes off topic I know.

nevadan's picture

"soon farming will be the most profitable profession in the world. And as bankers only go where the money is, Bernanke's strategy may in fact lead to the first net natural outflow of bankers from Wall Street in history."

Unlikely since farming would require their lily white palms to be greased with the actual instead of cash.

Jason T's picture

The devil is doing his work.. you know, the deal gov't's made to pay people not to work, pay them not to grow their own food from that magical money tree he gave congress.

Yen Cross's picture

I forgot I'm west coast. Before you get flooded Tyler. NICE WORK!!!!!!!!!!!!!!!!!!!!!

bob_dabolina's picture

HarryWanger says this is good because the S&P is up .76% and every meaningful commodity is up 2 -4%

So although cost of basic needs are doubling and quadroupling at least the stock market is up and this translates into an extra soap dish sold.

DonnieD's picture

Gold took off like a raped ape.

Hephasteus's picture

Nope normal buying and selling. Somebody bought something expensive but not too expensive.

moldygoat's picture

This is a great link between the globalists push for economic collapse and population reduction. Never really thought of hyper-inflating people to death.

America is safe....no wheat in Wonder Bread!

faustian bargain's picture

Dow chart since 1960, current-vs-constant dollar comparison, from Shadowstats:

http://www.shadowstats.com/imgs/2009/520/hyperinflation-20.gif

NOTW777's picture

while people in 3rd world countries riot for food cnbc upset dow lost 12k

Lord Koos's picture

" farming will be the most profitable profession in the world"

That'll be the day...

nevadan's picture

lol.  I suspect from your comment that you also have some farming in your background.

Sean7k's picture

More farm grain silos and grain held for sale during the year to increase profits for the farmers. Storage will be the new bank.

Mad Max's picture

Because storage is free, and none of those farmers have any debt that comes due right at harvest time...

Sean7k's picture

You sell enough to cover your costs at harvest and save the rest to release at better price points. Once you invest in the storage- you have better options than the coops where they are reluctant to give set contracts. Farming is a changin'.

MachoMan's picture

Bingo.  Storage costs aren't shit compared to the price appreciation we're seeing...  plus, with geothermal and other technologies, I'm guessing the electricity costs, even for rural storage, can be substantially mitigated, albeit costly on the front end.  If you can't pay for it, go in with a few neighbors...

Mad Max's picture

Storage costs aren't shit compared to the price appreciation we're seeing...  plus, with geothermal and other technologies, I'm guessing the electricity costs, even for rural storage, can be substantially mitigated, albeit costly on the front end.  If you can't pay for it, go in with a few neighbors

Wow, is it ignoramus night on ZH?  Where do I begin?

Let's see:

The real farmers I know, who live down the road and sometimes cut, rake and bale my hayfields, seem to think that storage costs are significant.  That may explain why they don't store much at their farms, except very briefly in the gravity wagons.

How exactly do you think electricity costs matter for storage?  The grain disappears if you don't keep it electrified?!?!?!

Oh my god: "with geothermal and other technologies, I'm guessing the electricity costs" for starters geothermal is not a useful way to generate electricit unless you have a volcano.  It's used for electric in Iceland and a few other places where Vulcan lives.  Totally useless for generating electricity in 99% of the US.  My house has a geothermal heating system, which IS an efficient way of heating a house, but does not nor can it generate electricity, and doesn't even generate heat in a way that would be useful for drying grain (a major, MAJOR expense for many farmers; and propane is what 99% of them use for grain drying).

"Go in with a few neighbors" - have you ever met a farmer?  Or even seen one?  This is not how farmers operate in the US.  It's a difficult business, with a lot of expensive equipment that sits idle for 48-50 weeks and gets used nonstop for 2-4 weeks of the year.  Anything that can realistically be shared already is.

But, don't let me stop you, please go on and explain why cold fusion will be replacing gas stations by Q4, and I'll by flying my battery-electric antigravity car to work by 2013.

nevadan's picture

Actually storage isn't all that much.  The current rates in Colorado where my family raises wheat is .03-.04/bu/mo.  So a year storage for 1000 bu. or $8000 worth of grain presently is <$500. There is a rate hike in the near future 50-100% though.  The elevators aren't going to miss out on the bull market in grains.

MachoMan's picture

First, I hate to break it to you, but hay is for horses and, in the scope of american agriculture, amounts to jack shit...  it has literally nothing to do with what we're talking about.  [e.g. price per volume, degree of market volatility, rate of decay, etc., all lead to different analyses].

Second, how does it add to the discussion to reform other posters' statements into nonsensicle blather?  Clearly, no one is advocating for the electrification of grain...  rather, electricity is one of the main variable costs in drying grain...  i.e. what you have to do to store grain on your own property.

Third, as for geothermal grain drying, here are a couple links from a simple google search:

http://www1.eere.energy.gov/geothermal/pdfs/directuse.pdf

http://www.faqs.org/patents/app/20100170105

http://www.gtpower.com.au/media/gtpower_brochure.pdf

Last, yes, you might say I am intimately acquainted with just a couple farmers...  however, this has nothing to do with farmers sharing things.  Obviously, markets are dynamic and when the market changes so as to provide technologies or an environment whereby shared grain storage is more efficient, it will be more widely adopted.  The fact of the matter is that a substantial amount of farmers choose not to mess with it and forgo a substantial sum to have someone else do all their drying, marketing, etc.  This is fine, but when you lock in your price early in the season and the price doubles by the end of the season, you've left a shit ton of money on the table...  and there are more than a few farmers that have been not so happy at these developments.  All I'm saying is that nothing stands in stone and market forces may not only facilitate, but necessitate change.