Nogger reports that Indian Wheat Sets More Contract Highs.
(emphasis mine) [my comment]
Friday, 30 October 2009
Indian Wheat Sets More Contract Highs
Indian wheat futures have posted another day of fresh contract highs this morning, with front-month November hitting Rs 1,421.10/100kg, that's just over USD300/tonne.
Wheat prices have now risen almost 12% this month. Despite protestations to the contrary, maybe that's what the government really want with planting about to begin for the 2010 crop.
There's six months to go before that arrives on the market however, so what is going to happen in the meantime?
Inflation is surging out of control, rising 1.51% during the week ended October 17, up from the previous week's annual rise of 1.21%. The Reserve Bank of India (RBI) now predict that wholesale price inflation will reach 6.5% by the end of March, 2010, a significant increase from the previous forecast of 5% and well above its target inflation rate of 3%. Some private forecasts are that Indian inflation will hit 8% by the end of March. [My bet? India will wish it only had 8% inflation]
Meanwhile consumer price inflation is running at over 10%, with staple foods such as potato prices almost double what they were a year ago, and sugar up by almost 50%.
India, typically amongst the world's top three or four rice exporters, is now looking to actively import rice. The government announced a scrap on import tariffs on certain types of rice this week, in an effort to boost supplies after summer drought slashed production. Three state-run agencies have wasted no time in announcing tenders to import 30,000 MT this weekend.
It might only be a matter of time before something similar happens with wheat.
My reaction: Food shortages are driving inflation out of control in India. This is the beginning of the 2009/10 food crisis, and the situation will continue to worsen until it turns into a global panic.
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I am still working on putting major article together.
I will publish something today, either the entire article or the sections I have finished (as I did with Gold Market Reaching The Breaking Point)
Check back around the end of the day.
I live in India, Rahpoe province. Wheat prices are stable here. I do not know what Mr. Eric is talking about. We have so much wheat that we burn it in fireplace to stay warm. I think wheat price is to drop, not rise.
I, too, live in India; Poopie Province. Grains are in surplus at the moment. We also burn wheat for fuel; not sure why people think wheat is in shortage.
Yogi and Jet are you fake and mean?
No sir Anon,
I am real person. We burn wheat for fuel in India, Poopie Province. I am not mean - I only try to help.
My wife go to grocery every day to buy wheat for our fireplace -- wood is scarce here, so we burn the wheat.
many thanks,
Jet
I, too, live in India; state of Rajasthan. Wheat here is so abundant that many are also burning it for fuel. I am amazed that Mr. Eric is talking like this. He should come to India so that he may know first hand that we have much wheat. These are nothing but mischievous rumors being spread.
Mr. Anon,
You live in Rajasthan? How joyous! Have you been to our Poopie Province? If not, you must come and visit --- I will buy extra wheat to burn for your visit and we can drink tea.
Jet,
You are mischievous, you know there is no such province in India. And I am greatly offended by you saying that. May Rudra come for you in the night.
Poopie Province is 235 kilometers NW of India, Hagnsdish State; 800 kilometers west of India, Suddkee Province.
I must go now --- we are working on burning wheat for car fuel -- much like ethanol in U.S., but better.
Legit question:
Is "Eric" really a government web-bot?
I have lost what little faith I had left in Eric.
He said he was going to publish his MAJOR ARTICLE several days ago, and has not done so.
Why would he lie to us? I'm hanging on his every word!
LOL!
@Anon,
Don't you mean you're hanging on his every "cut-and-paste"?
ROTFL!
Here in Rahpoe province we have wheat farms expanding the crop because we are expecting a cold winter -- must have more wheat for the fireplace.
interesting article and specially comments ;)
wee'll all know soon who was right and who was lying... right?
you wheat burners are so funny ;))
and eric is still on top place in mine google reader...
Here in Rahpoe province, we also use gold for dining utensiles and for drinking chalices as gold is in over supply. I buy 10-ounce gold bricks for $300 total. Also, we throw gold into river for good luck.
It seems that Yogi and Jet are firing wheat beside the computer.
i have VERY STRONG views on all your mocking comments.But they are not quite ready yet.
Check back in 24 hours to find out what they are!
first
Fake dot-heads with bad accents are so 1980s.
Eric, please don´t delete the Jet & Yogi comments, it would be a waste to remove such extremely funnie posts.
I mean....
Hey GUYS, Leave Eric be - he is a time optimist, just like me - I always say I will only be 10 mins and it takes 3 hours.
For some reson my wife complains!
(must be a Freudian slipt all that wheat and all those fat boys in the USofA)
I really hope that Eric does not take the easy way out and only post part of the article tonight...
I really want to see it in all its glory...
But I just have a feeling that he is pressed for time and will end up piecemealing it out...
/sigh
Hi!
Greetings from Finland! I live in eastern Finland and here we're trying to burn gold (10 oz /night)while wheat is too cheap.
Waiting for your article, Eric. This might have something to do with your final conclusions.
http://www.reuters.com/article/basicMaterialsSector/idUSL272564320091102
Anybody saw Gold rocketing for a few seconds today? I haven't seen anything like that ever..
Eric you're awesome
but
The people in these comments are WACK!
I think it's got to be all the same person and they spent all day on your blog
Take precautions... someone is completely obsessed with you
So you indian guys burn wheat, eh? I will tell you one thing for sure - in my country we BURN MONEY! Our central bank has provided us with wooden coins to make fires with, and we are thankful for that because they burn much better than paper notes.
A long time ago we had silver coins, and at that time we were one of the richest countries on earth, then we had nickel for some decades and now we have wood! You can come over here and sit around our campfire fueled only by official currency.
Why we do burn money? Well, the warmth it causes is the most valuable thing you can get for your money around here.
Thanks for your blog, Eric. I appreciate the information and the way you present it. Don't let the a**hoes get you down or distract you from your goals.