A recent article from the Financial Times caught my eye. It highlighted on the "shortages" in sugar and coffee which according to the report triggered an attendant surge in prices.
Quoting the Financial Times (emphasis added), ``Caffeine addicts face higher prices for their daily fix as the wholesale cost of both coffee and sugar rise sharply because of poor crops and robust demand.
``“We are in a dangerous situation,” Andrea Illy, chief executive of Italy’s leading coffee company, told the Financial Times, warning that prices could “explode” due to supply shortages.
``His comments echo those of other industry players – and point to a sharp shift in sentiment among analysts.
``Until recently, it was widely assumed that the global economic crisis would damp consumption and prices for coffee. However, that forecast proved wrong, since demand for coffee has remained high, even while consumers have moved from cafés to home drinking."
And since we think that the ocean of money flooding the world today would need to flow into assets or goods or services, we suspect that such surges have been part of the "inflationary seep through".
So far, traces of rising food prices seems generally contained. Nonetheless there seems some signs that food inflation may have just begun.
in Pig and Feeder Cattle prices (courtesy of Danske)...
and in wheat, soybeans and corn, aside from sugar
Meanwhile, rice prices appear to be "bottoming"
From ino.com
Quoting the Financial Times (emphasis added), ``Caffeine addicts face higher prices for their daily fix as the wholesale cost of both coffee and sugar rise sharply because of poor crops and robust demand.``“We are in a dangerous situation,” Andrea Illy, chief executive of Italy’s leading coffee company, told the Financial Times, warning that prices could “explode” due to supply shortages.
``His comments echo those of other industry players – and point to a sharp shift in sentiment among analysts.
``Until recently, it was widely assumed that the global economic crisis would damp consumption and prices for coffee. However, that forecast proved wrong, since demand for coffee has remained high, even while consumers have moved from cafés to home drinking."
And since we think that the ocean of money flooding the world today would need to flow into assets or goods or services, we suspect that such surges have been part of the "inflationary seep through".
So far, traces of rising food prices seems generally contained. Nonetheless there seems some signs that food inflation may have just begun.
in Pig and Feeder Cattle prices (courtesy of Danske)...
and in wheat, soybeans and corn, aside from sugar
Meanwhile, rice prices appear to be "bottoming"
From ino.com
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