posted on Feb, 12 2013 @ 09:03 PM
The drought hurt the cattle ranchers and they sold their cattle off. No food no cows. The military increased their purchasing of beef so that the
price of beef would not plummet. They then made a lot more MRE's out of the meat, that's why the huge orders this last summer. They supplied the
beef to the companies I suppose.
Now we have a slim heard and the price is going to skyrocket because of the shortage. Also agricultural corn and soy crops suffered from the drought
on a countrywide basis. Wheat got hit pretty hard to but the winter wheat did a little better. Summer wheat and winter wheat have different
properties and are used differently in baking. Our national reserves buffered the wheat which should have gone up more than it did and exports to
other countries paid better than American prices which are regulated and subsidized. Now we will have even higher wheat prices.
I check on commodities a couple of times a year, I am interested in keeping track of food futures and read all articles I come across. Coffee may
spike a lot this coming year caused by too low prices because the farmers can't afford to take care of their crops. I learned that from someone here
and did a little studying on it. I suppose I should get more of the sale coffee while I can, it's been around 7.99 for a 32 oz can on sale. I
expect it to go up to 12.00 sometimes this year. It will only be up for a couple of years I feel till they get new crops developed.
Eggs and chicken should jump a lot yet, eggs are already way up from six months age. The chickens eat a lot of grains which are rising.
So meats, eggs, cereals and breads will be going way up. It looks like potatoes are doing alright, the potato growing areas are not so drought
stricken. The price of milk and soy milk should also jump. Hopefully this drought will not last. We'll just have to wait and see. I have stocks to
buffer the costs so I am not so worried. I may be fishing a lot this summer if meat prices go way up and may have to shoot a deer if I cannot afford
Of course phones and cable will go down so they don't have to increase Social Security cost of living. Oh well, they haven't gave much of a raise
in many years. Any raises were cancelled out by rising part B increases.