Food inflation
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Started by wglassfo - April 30, 2022, 10:59 a.m.

Everybody keeps telling us to brace for higher food prices

I was wondering how many people know were the increased cost comes from

We are told the high price of wheat and possibly higher prices will affect our bread cost

Does anybody know how much  10.00 wheat affects the price of a loaf of bread

Those darn farmers are getting rich on bread prices

Rumour has it Biden is offering a 10.00/acre bonus to grow more wheat

Problem solved. More gov't money for the poor farmer

Just  to give you an idea of our cost

A new set of 8 tires and rims will cost us 60,000.00 10.00/acre should help with those tires we really have to buy

By metmike - April 30, 2022, 11:18 a.m.
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Great topic Wayne, thanks!

Earlier this month, I noted that the price of jumbo eggs at Walmart went from $1.23 to $3.50, all at once, within less than a week. 

Up until then, I'd been stocking up on eggs and telling my wife that I couldn't believe eggs continued to be so cheap at $1.23 in late March. 

My wife said that they had to kill a bunch of chickens and that's the reason. 

So I shopped at Meyers 3 days ago and their large eggs are $1.19, the same price they've been for almost a  year. 

What the heck?

So I stocked up and am assuming that won't last but why the incredible difference and why still so low at Meyers?

Time to do some investigating!

Same thing with how much the cost of wheat plays a role in the price of a loaf of bread. Let's have some learning fun and find out more.

I'll guess that its less than what most people think. 

I've not read or heard of anybody saying that farmers are getting rich from this, Wayne. Where do you get that from?

By metmike - April 30, 2022, 12:52 p.m.
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metmike: The entire reason for wheat to crash 30c on Friday was the biggest rain events in many months for some key HRW drought stricken areas next week. 

By metmike - April 30, 2022, 1:03 p.m.
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Let's compare that with the chart from the previous page:

You can see the unmistakable correlation. How much is direct causation??? 

Fuel prices were also spiking to record highs in the first half of 2008, if you remember.

2022 is not close to being half over, so bread price inflation is very likely to be much greater from current near record high prices of wheat. As one would expect, there's usually a lag in passing that on down the price chain before it reaches consumers much later.

By metmike - April 30, 2022, 1:16 p.m.
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Here's an article from the last time wheat spiked this high over a decade ago(2008) comes from the KS wheat commission and wheat growers association. So it's a bit biased.

Wheat is ‘cheapest input' in bread loaf

If bread is for sale at your local super market for $2 a loaf, how much did the farmer receive for the grain that was used to make the bread if wheat prices are roughly $7.50 per bushel?

Your choices:

A) $1

B) 75 cents

C) 50 cents

D) 11 cents

If you answered "D” you are correct, according to the publication, "Kansas Wheat,” published by the Kansas Wheat Commission and the Kansas Association of Wheat Growers.

Although wheat is the major ingredient in bread, the cost paid to farmers for the grain is a fraction of the total cost to bring it to the local grocery store, said Kim Anderson, agricultural economist at Oklahoma State University.

By bear - May 4, 2022, 12:41 a.m.
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in the big picture, prices go up because govts and central banks print and spend too much money.

look at that massive increase in money supply the last 2 years.  

By metmike - May 4, 2022, 1:25 a.m.
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Holy Cow bear! Thanks.

By metmike - May 4, 2022, 12:10 p.m.
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