June 10, 2008 3:43PM
Why Corn is as High as an Elephant’s Eye
By Alexis Glick
This morning on Money for Breakfast I talked to a farmer in Wisconsin who has seen severe damage to his crop due to the enormous flooding. This on a day when the USDA released its crop report emphasizing continued weather disruptions and raised its guidance for wheat prices next year. Randy Roecker of Roecker’s Rolling Acres and a member of the National Dairy Board told me why this year has been so difficult. Honestly it was disheartening and eye opening! We forget that farmers are experiencing many hardships due to terrible weather conditions, rising oil prices and increased costs for items such as fertilizer, not to mention transportation costs for packaging and selling their goods.
Vic Lespinasse, a market analyst at Grainanalyst.com and Eric Bolling, a contributor and trader joined me along with Randy to discuss why corn prices have escalated and whether food inflation is here to stay. In aggregate food prices are up on average 9% over last year but certain products are MUCH higher than that.
Comment by Justin
Jun 10th, 2008 at 5:50 pm
Cash/equities/stocks are losers and commodities are king. Commodities actually have some intrinsic value. Fiat money created out of thin air by the banking institutions around the world is a joke. Don’t pay me in dollars. They are a depreciating asset. Pay me in land, or food, or commodities, or goods and services. Believe me, the whole world will be back to barter if we continue down the road we are on. With nothing backing major world currencies except the threat of violence for not accepting them as legal tender, eventually the people will revolt from their bondage created by international banking institutions and the money lending Illuminati.