Food Prices Soar – Corn, wheat prices ride torrent of weather shocks

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Food Supply

 

HEADLINE: Corn, wheat prices ride torrent of weather shocks

SUMMARY: The ongoing series of severe weather events has caused prices of U.S. crop staples such as corn and wheat to surge. Torrential rains, floods, droughts and searing heat have endangered agricultural commodities each of the past few planting seasons.

“Farmers have been dodging bullets with Mother Nature these last few years,” said Kevin Kerr, editor of Kerr Commodities Watch. “It’s inevitable that we will eventually get a growing season of severe heat and drought or disease — that year may be here.”  The Mississippi ( Flood of 2011) is just the latest in a series of variables with upside price shock potential,” said Alan Knuckman, managing editor of the Resource Trader Alert.

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Analysis by Jim Satterfield, Firestorm President/COO

ANALYSIS: There is no food shortage. ‘My grocery store has food.’ …  NOW.

How about next week and next month? What about cost? The past weeks have taken millions of acres of farmland out of production. Processing and transportation have been impacted. Yet, we all take our food for granted.

We have seen the price of oil swing rapidly upward based on events around the world. We expect it. We anticipate it. It always occurs. What about food?

The same types of supply chain relationships exist in multiple industries. Food is taken for granted. Today, we do not all have the opportunity to grow our own food. We depend on others. In many parts of the world, the lack of available food and water are primary concerns.

From college, we remember Maslow’s hierarchy of needs. Every disaster has short- and long-term impacts. The recent events continue to cause devastation to families, businesses, and our economy.
 
Do you understand the impacts on your business? Seeing disasters in the media is painful. Seeing them in your business or family is horrific. We are reminded every day of a disaster, but continue as if nothing will happen to us. Unfortunately, it will.

The time to focus on solutions is today. Do you know how your plan matches best practices? You should. Have you exercised your plan? You should. It is easier to plan, train, and test than explain why you didn’t.

Have you seen food prices rise in your area? Let us know in the comments below and thank you!

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