Let that sink in, because it is a beautifully accurate synopsis.
Telling Russia that it cannot export wheat, nickel, aluminum, fertilizer etc., is the same as telling the rest of the world it cannot imports Russian wheat, nickel, aluminum, and fertilizer.
The amusing thing about all of this is that president Bxxxn is doing exactly what Txxxp would have done.
I noticed the bag of fertilizer I bought last week was 250% of a bag I bought 2 years ago.
Suppose food pricing will rapidly rise as Ukraine farms cannot produce during a war & Russia agricultural products are being targeted by sanctions.
India has ignored the West & bought Russian oil. Methinks they will also procure Russian agriculture products also. So what will the West’s response? Is India to be added to the sanction list?
Instead of reaping a windfall, Ehmke found a commodities market turned upside down. He and his wife Louise told Reuters they couldn’t sell a nickel of their upcoming summer wheat harvest for future delivery. Futures prices for corn and wheat had rocketed so abruptly that many along the complex chain of grain handling - local farm cooperatives, grain elevators, flour millers and exporters - stopped buying for fear they couldn’t resell at a profit.
“More than anything, the market is just in a panic,” Andrew Jackson, a Kentucky grain merchandiser, told Reuters.
Many of these players continue to hold back on purchases to see how the Eastern European conflict shakes out: Russia is the world’s top wheat exporter and Ukraine is a major global supplier of both wheat and corn.
While some North American millers have said they have enough grain on hand from past harvests to continue producing for several months, prolonged or repeated disruptions to grain trading could eventually contribute to already-inflated food prices.
I expect large corporate farms will benefit as more smaller farms go under & are bought by the corporate farms to further concentrate food production into fewer hands.
Instead of reaping a windfall, Ehmke found a commodities market turned upside down. He and his wife Louise told Reuters they couldn’t sell a nickel of their upcoming summer wheat harvest for future delivery. Futures prices for corn and wheat had rocketed so abruptly that many along the complex chain of grain handling - local farm cooperatives, grain elevators, flour millers and exporters - stopped buying for fear they couldn’t resell at a profit.
Before there ever was a commodities futures market, didn’t farmers sell directly to mills? Is there a reason that such direct transactions be conducted in the current environment? Without the commodities market makers?
Yeah, the farmer will not be getting the “rocketed pricing”; he now will be taking the risk of selling at what ever he can get, but there will still be a demand at some price point.
Never farmed or ranched for a living, so don’t know how unworkable is the suggestion. Did have an uncle who farmed/ranched in AZ. Pretty much did as I suggest. Worked hard all his life and IIRC, got well rewarded for his effort.
Mish is not telling readers of this board anything new.
This board began debating the extent of the sanctions, as soon as the sanctions were implemented.
It’s easy for me to forget that the METAR stuff discussed here, is often a week ahead of mainstream media.
… second “poor me victim-farmer” post
Here is the KEY information point from the poor victim farmer post: Instead of reaping a windfall
Let me translate - the mean commodities broker won’t pay poor me an exorbitant amount that is really price gouging.
I’m a victimmmmmm… woe is meeee…
the action or practice of overcharging customers for something by sharply increasing its price, especially in order to take advantage of sudden high demand.
It’s heresy I know, but even a craphole state like Texas enforces anti-price gouging laws during emergencies like hurricanes.
Let me translate - the mean commodities broker won’t pay poor me an exorbitant amount that is really price gouging.
What is price gouging?
Price gouging is when an uninvolved third party thinks that a willing buyer should not be permitted to pay the price they and the willing seller agreed to.
