Monday, June 15, 2009

Lower Grain Supplies threaten food pricing and availability in 2009.

Sometimes we can't just "keep" to ourselves. The actions of others influence and directly have an impact on us as individuals and our families. For example, grain supplies appear to be very, very low.

Why is that so? There are a number of reasons. But one is China's current policy to build their stock of Soybeans and use the weakening US dollar to buy with strength. Some of the information that LRH has read shows that some grains available now will only be enough to supply us for approximately 33 days. Other grain stores have not been this low in 25 years. Add to that the credit crunch making it difficult for some farmers to secure financing to plant their fields.

So, how does that impact you? If you do not have the needed grains in your storage, it may cost you more and there is also the direct possibility that you may not be able to obtain them. Also, the cost of some prepared items may also rise. Consider the following quote from an article in the Los Angeles Times (,0,74598.story):

Crop prices collapsed after last fall's financial crisis, when global
demand sank along with the economy, but have been steadily rising this spring.
Still, prices haven't come close to last summer's all-time highs.

Higher grain prices could hurt already-battered food companies
including General Mills Inc. and Tyson Foods Inc., which have had to pay more
for ingredients as prices for corn, wheat and soybeans have risen.

Prices at the grocery store could also climb as food producers pass their
higher costs on to consumers.

Invest now, prepare now, and have the security of being able to "sleep while the wind blows".

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