Martinsville, Ohio | Bio-fuel Production Sowing Soybean Inflation Seeds
No food inflation? Think again. It's all tied to rising soybean demand, and plummeting soybean farming in face of land-shifts to corn. Not surprisingly, with bio-fuel production upping corn farming, soybean prices may be headed for the biggest jump in three decades as farmers plant more fields with corn, Bloomberg News reports.
Growers in the U.S. are preparing to sow the fewest acres of soybeans in 10 years. At the same time, demand is rising, creating conditions that traders say may double this year's average price of $5.98 a bushel and allow soybeans to replace corn as the best- performing farm commodity, the wire service says.
Consumers will feel the pinch because food makers including Paris-based Group Danone SA and Orrville, Ohio-based J.M. Smucker Co. will charge more for everything from peanut butter to frozen pizza to make up for costlier vegetable oil derived from soybeans, said Prudential Equity Group Inc. analyst John McMillin in New York. Meanwhile, soybean farmers in China, Brazil and Argentina will reap windfall profits, as they export soybeans to U.S. food-makers at higher prices. This is from Land and Farm Newsletter. Local farmer has charts back to 47 plastered all over his walls and he is holding for big prices. What do you think? Ed |
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