U.S Corn Reserves Hit 15-Year Low

You do have at least a few months of food around I hope. Prices are going to skyrocket so start getting sales while you can:

ST. LOUIS – Rising demand for corn from ethanol producers is pushing U.S. reserves to the lowest point in 15 years, a trend that could lead to higher grain and food prices this year.

The Agriculture Department has left its estimate for corn reserves unchanged from the previous month. The reserves are projected to fall to 675 million bushels in late August, when the harvest begins, or roughly 5 percent of all corn consumed in the United States. That would be the lowest surplus level since 1996.

The limited supply is chiefly because of increasing demand from ethanol makers, which rose 1 percent to 5 billion bushels. That’s about 40 percent of the total crop.

But the increase didn’t alter the agency’s overall estimate, mostly because livestock producers are expected to scale back their corn purchases.

The Agriculture Department estimated that demand from livestock producers fell 1 percent to 5.15 billion bushels.

Crops prices rose about 1 percent to $7.67 during morning trading, shortly after the report was released. The price of soybean rose 1 percent to $13.80 a bushel. Wheat was virtually unchanged at $7.76 a bushel.

Corn prices affect most products in supermarkets. Corn is used to feed the cattle, hogs and chickens that fill the meat case, and it is the main ingredient in cereals and soft drinks.

It’s also time to enjoy a last few steak dinners. If you haven’t already consider joining a bulk grocer like Costco – I did and have never regretted it.

Sysco Corporation Warns of Major Food Disruptions Due to Severe Weather

Sysco is one of the largest food distributors in the world and they sent out this news alert to their clients. Severe weather has destroyed so many crops that they are expecting both immediate disruptions and major impact to food supplies in 30-60 days:

THE EXTREME FREEZING TEMPERATURES HIT A VERY BROAD SECTION OF MAJOR GROWING REGIONS IN MEXICO, FROM HERMOSILLO IN THE NORTH ALL THE WAY SOUTH TO LOS MOCHIS AND EVEN SOUTH OF CULIACAN.  THE EARLY REPORTS ARE STILL COMING IN BUT MOST ARE SHOWING LOSSES OF CROPS IN THE RANGE OF 80 TO 100%. EVEN SHADE HOUSE PRODUCT WAS HIT BY THE EXTREMELY COLD TEMPS. IT WILL TAKE 7-10 DAYS TO HAVE A CLEARER PICTURE FROM GROWERS AND FIELD SUPERVISORS, BUT THESE GROWING REGIONS HAVEN’T HAD COLD LIKE THIS IN OVER A HALF CENTURY.  THIS TIME OF YEAR, MEXICO SUPPLIES A SIGNIFICANT PERCENT OF NORTH AMERICA’S ROW CROP VEGETABLES SUCH AS: GREEN BEANS, EGGPLANT,CUCUMBERS, SQUASH, PEPPERS, ASPARAGUS, AND ROUND AND ROMA TOMATOES.  FLORIDA NORMALLY IS A MAJOR SUPPLIER FOR THESE ITEMS AS WELL BUT THEY HAVE ALREADY BEEN STRUCK WITH SEVERE FREEZE DAMAGE IN DECEMBER AND JANUARY AND UP UNTIL NOW HAVE HAD TO PURCHASE PRODUCT OUT OF MEXICO TO FILL THEIR COMMITMENTS, THAT IS NO LONGER AND OPTION.WITH THE SERIES OF WEATHER DISASTERSTHAT HAOCCURRED IN BOTH OF THESE MAJOR GROWING AREAS WEWILL EXPERIENCE IMMEDIATE VOLATILE PRICES, EXPECTED LIMITED AVAILABLITITY, AND MEDIOCRE QUALITY AT BEST.THIS WILL NOT ONLY HAVE AN IMMEDIATE IMPACT ON SUPPLIES, BUT BECAUSE OF VERY STRONG BLOSSOM DROPS, THIS WILL ALSO IMPACT SUPPLIES 30 – 60 DAYS FROM NOW.SOME GROWERS ARE MEETING WITH THEIR BOARDS RIGHT NOW TO DETERMINE WHETHER THEY SHOULD IMMEDIATELY RE-PLANT, HOPING FOR A HARVEST BY LATE-MARCH-TO-EARLY-APRIL, OR WHETHER THEY SHOULD DISC THE FIELDS UNDER AND WAIT FOR ANOTHER SEASON.

Lest you think this is business as usual they end their announcement thusly:

We are doing everything we can with our growers to minimize the effect of this disaster on you. With the unprecedented magnitude of this event we wanted to immediately make you aware of the conditions. We will continue to send out communications as our people on the ground report back to us. We thank you and we appreciate your understanding during this time.

I don’t know about you but when a major food distribution corporation starts throwing around words like “disaster” or claiming an “event” is of “unprecedented magnitude” I start to get nervous.

h/t Survive and Thrive TV

Get Ready for Higher Food Prices

From Omaha.com:

Warnings of higher food prices headed for American supermarkets and restaurants were swallowed easily across much of farm country Wednesday.

The big gulp came when the U.S. Department of Agriculture reported that global demand had pushed U.S. corn supplies to their lowest point in 15 years.

The price of corn, which has doubled over the past six months, affects most food products in supermarkets. It’s used to feed the cattle, hogs and chickens that fill the meat aisles.

It is the main ingredient in Cap’n Crunch and Doritos. Turned into syrup, it sweetens most soft drinks and many foods.

Corn also is part of the agricultural blend that fuels the economies of Nebraska, Iowa and other farming states. Iowa is the nation’s top corn-producing state; Nebraska is third.

Shoppers could see higher grocery bills as early as three months from now, though most of the impact won’t be felt for another six months, said Scott Irwin, an agricultural economics professor at the University of Illinois.

Chicken prices are among the first to rise because the bird’s life span is so short that higher feed costs get factored in quickly, he said. Price hikes for hogs take about a year and cattle two years. Prices on packaged foods take six or seven months to rise.

I’d plan more for a one or two month window. Start stocking up now. Farmer’s are set to make some money, and you micro-farmers and hardcore gardeners may be able to cash in as well:

Warnings of higher food prices headed for American supermarkets and restaurants were swallowed easily across much of farm country Wednesday.

The big gulp came when the U.S. Department of Agriculture reported that global demand had pushed U.S. corn supplies to their lowest point in 15 years.

The price of corn, which has doubled over the past six months, affects most food products in supermarkets. It’s used to feed the cattle, hogs and chickens that fill the meat aisles.

It is the main ingredient in Cap’n Crunch and Doritos. Turned into syrup, it sweetens most soft drinks and many foods.

Corn also is part of the agricultural blend that fuels the economies of Nebraska, Iowa and other farming states. Iowa is the nation’s top corn-producing state; Nebraska is third.

Shoppers could see higher grocery bills as early as three months from now, though most of the impact won’t be felt for another six months, said Scott Irwin, an agricultural economics professor at the University of Illinois.

Chicken prices are among the first to rise because the bird’s life span is so short that higher feed costs get factored in quickly, he said. Price hikes for hogs take about a year and cattle two years. Prices on packaged foods take six or seven months to rise.

While corn prices soar some of you boutique producers are going to see more traffic to farmer’s markets as supermarket prices meet, then exceed, specialty prices. People looking for deals on food will be exposed to small market farms as well. Don’t bother growing corn, high nutrition tasty plants that can be harvested more than once will be in demand soon, as will their seeds.

In the meantime, check your circulars there’s some good deals to be had. Go shopping for some staples and now might be the time to  buy some food buckets and sprouting kits.