Wheat Soars to Record as U.S. Stockpiles Head for 60-Year Low

[Ichingcarpenter]

Wheat futures in Chicago breached $11 a bushel for the first time, rising by the exchange-imposed daily limit for a sixth day after the U.S. forecast its lowest inventories in 60 years.

Stockpiles in the world's biggest exporter will drop to 272 million bushels at the end of May, 6.8 percent less than expected a month ago and down 40 percent from a year earlier, the U.S. Department of Agriculture said in a report Feb. 8. Inventories will be the lowest since 1948 when farmers grew less and shipped supplies overseas to help countries rebuild after World War II.

Wheat's unprecedented rally this month may raise costs for companies, including Kellogg Co. and General Mills Inc., the largest U.S. cereal makers. Higher food prices are also stoking inflation, increasing social tension in developing countries and making it difficult for central bankers to spur economic growth by cutting interest rates.

``There isn't enough spring wheat to meet ongoing shipment demands of Asian customers,'' Simon Roberts, head of agricultural commodities at Australia and New Zealand Banking Group Ltd., said by phone from Sydney today.

Wheat for March delivery rose 60 cents, or 5.5 percent, to $11.53 a bushel in after-hours electronic trading on the Chicago Board of Trade as of 10:15 a.m. in London. Prices gained 16 percent last week, the most ever, and have more than doubled in the past year.

The Chicago exchange doubled its daily limit from today after prices gained the previous maximum of 30 cents for five straight days.

Dwindling Supply...........snip


http://www.bloomberg.com/apps/news?pid=20601087&sid=ah7IZrnlONFE&refer=home

[Nitrogenica]

1. Time to invest in wheat futures!!!

It's not their fault they're making record profits.

We must keep this Stock Market afloat with rubber bands and band aids.

Disgusting. Food was the last thing not pillaged by the wealthy.

[Ichingcarpenter]

2. See this thread too--- there is some serious shit coming down the pike.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x338532

[Nitrogenica]

6. Eeeegads...

Its a "get it while we still can" frenzy.

We're all going to pay a heavy price out of our wallets for this crap.

[thunder rising]

3. How complex is this circle? We grow it, China buys it and augments the products with melamine

and then sells the products back to us. And there's not enough wheat to poison so the futures go up. And for some reason it's cheaper for China to buy it, ship it to China, poison it, and send it back, than for US manufacturers to process it here?
:crazy:

[Ichingcarpenter]

5. Part of the shock doctrine to manipulate a different kind of shock and awe

Where huge profits can be made by creating a Disaster Capitalism

[gristy]

4. Interesting

Yeah, with those prices, I can see how we're gonna grow our oil. Yeah, I can see how that's going to work just fine...

[Ichingcarpenter]

7. With the presidential campaigns going on

very few are paying attention to what is going on
with the world stage that these financial crooks are doing
except complain about higher food prices.

Huge sums are being made over the substances on the dinner table
that will force the poor and middle class to work in the kitchen
because they won't be able to pay for the dinner.

[El Pinko]

8. I guess I better go buy some flour.

I like to bake, so I guess I can save a bit by baking my own bread, muffins, etc.

[Ichingcarpenter]

9. As Marie Antoinette said "let them eat cake"

I wonder what the 3rd estate will say? Probably the same thing
they did back then to the nobility.

[greenvpi]

10. So the stockpiles of rich old white men are getting low...

How is that my problem? It isn't, and I don't support public support to bail them out like you do.