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re: Wheat and Rice prices about to skyrocket here in the USA

Posted on 4/1/22 at 12:42 pm to
Posted by Taxing Authority
Houston
Member since Feb 2010
63318 posts
Posted on 4/1/22 at 12:42 pm to
quote:

Wheat bushels set to increase in price 175%
Potash fertilizer set to increase in price 200%
11 month worldwide rice supply down to 4 months
Don't worry. Biden will send out check to everyone so it won't be so expensive

quote:

Why?

An issue of maxing out what we can produce vs population.
I flew last week. We are no where near 100% usage of land.
Posted by kingbob
Sorrento, LA
Member since Nov 2010
70464 posts
Posted on 4/1/22 at 12:45 pm to
The issue is one of a lack of fertilizer, not a lack of arable land.
Posted by Taxing Authority
Houston
Member since Feb 2010
63318 posts
Posted on 4/1/22 at 12:47 pm to
quote:

The issue is one of a lack of fertilizer, not a lack of arable land.
I get it. Just jaded because since the 60s they've been telling us we're out of capability to feed ourselves b/c of overpopulation.
Posted by bbvdd
Memphis, TN
Member since Jun 2009
28657 posts
Posted on 4/1/22 at 12:47 pm to
read an article this morning saying corn prices are expect to really rise since corn requires such a large amount of fertilizer.

Farmers just won't plant much of it.
Posted by kingbob
Sorrento, LA
Member since Nov 2010
70464 posts
Posted on 4/1/22 at 12:50 pm to
The problem is corn is used in EVERYTHING, not just cornmeal and corn starch but ethanol blended gasoline, high fructose corn syrup, animal feel, etc. They won’t be reducing the amount of corn being used for making fuel, but they will spike the hell out of food prices.
Posted by UncleFestersLegs
Member since Nov 2010
16880 posts
Posted on 4/1/22 at 12:51 pm to
quote:

While the USA on Thursday sent out a strong message to India on “consequences” of bypassing sanctions, the Biden administration has ironically carved out a mechanism that would insulate Russian fertilisers from possible sanctions.
quote:

The Office of Foreign Assets Control (OFAC) of the US Treasury published a new general license dated March 24, which effectively removed Russian mineral fertilizers from possible sanctions. They were included in the list of vital products along with agricultural products, medicines and medical products.

Economic Times India
Posted by dkreller
Laffy
Member since Jan 2009
33968 posts
Posted on 4/1/22 at 12:51 pm to
quote:

rice famine = cajuns keep all rice for themselves

fify
Posted by rltiger
Metairie
Member since Oct 2004
2434 posts
Posted on 4/1/22 at 12:52 pm to
Couple of things re: soybeans and rice..

South America's crop cycle is opposite the US. When we are planting, they are harvesting. Their rainfall is 20-30% behind historical averages, so the crop projected to be @15% below projections. Futures are up over 30% since November on soybeans.

What that means is in US, more acreage will be diverted to soybeans, taking acreages away from rice, which current crop is @16% down from last year. Less rice + less inventory = @23% less overall inventory projected than last year.

Bottom line 2021-2022 crop is projected to be down. The good news is with stable domestic sales and a decline in export they'll be plenty of rice for da Jambalaya an Boudin.
Posted by TigerGyp
Lafayette
Member since May 2006
1009 posts
Posted on 4/1/22 at 12:52 pm to
What is the 11 month supply? 4 month supply? This is jibberish.
Posted by Redtiger78
Louisiana
Member since Jul 2021
25 posts
Posted on 4/1/22 at 12:56 pm to
Corn acreage is down for 2022 because of the price of nitrogen.
Posted by Poohter
SW, Mo.
Member since Sep 2009
1737 posts
Posted on 4/1/22 at 12:57 pm to
quote:

Ridiculous fertilizer prices will cause medium size farmers to plant less acres, also increasing prices due to less supply. Also expect older farmers to sell land.


I wonder why Bill gates is now the largest Farmland owner....
Posted by theRealJesseD
Member since Nov 2021
4714 posts
Posted on 4/1/22 at 12:58 pm to
One thing is for damn sure - the Left will bend heaven and earth to keep Soy prices in check
Posted by Plx1776
Member since Oct 2017
18598 posts
Posted on 4/1/22 at 12:59 pm to
Yes.. but we get to virtue signal.
Posted by Redtiger78
Louisiana
Member since Jul 2021
25 posts
Posted on 4/1/22 at 1:00 pm to
It’s how many months the amount of commodity in storage can supply before it runs out.
Posted by WWII Collector
Member since Oct 2018
9013 posts
Posted on 4/1/22 at 1:01 pm to
We can't make fertilizer here in the USA?
Posted by Midtiger farm
Member since Nov 2014
6161 posts
Posted on 4/1/22 at 1:04 pm to
quote:

I doubt we will ever see $30 rice


California sells $30 + rice every year

This year with the drought it might be $45/cwt
Posted by Midtiger farm
Member since Nov 2014
6161 posts
Posted on 4/1/22 at 1:10 pm to
quote:

Louisiana has lost a lot of Rice production capability because the wells in SW Louisiana have grown more and more salty as the amount of water pumped has been to great for decades.


This is like 50th on the list of reasons why LA has lost rice acres
Posted by kingbob
Sorrento, LA
Member since Nov 2010
70464 posts
Posted on 4/1/22 at 1:12 pm to
quote:

We can't make fertilizer here in the USA?


Fertilizer is essentially 3 different nutrients (nitrogen, phosphorus, and potassium) that different plants and soils need to be productive. Some fertilizer raw materials can be sourced domestically, but others cannot.

The U.S. does not have nearly enough domestic potassium sources to meet the demand, and thus imports most of it from Canada, with Russia and Ukraine being the next largest sources.

The nations of Europe get most of their potash (potassium) from Ukraine and Russia, so the disruption of that supply means more countries buying Canadian potash, meaning a shortage and higher prices. Corn production tends to need a lot of potassium to produce economical yields, and corn is in everything, so fertilizer shortage means significantly higher food prices.

In addition, while the U.S. largely satisfies its own demands for Phosphorus, it is believed that our natural reserves may run out in the foreseeable future. China, Mexico, and Morocco have the largest untouched reserves. Morocco is the really interesting one because their reserves are located in the sparsely populated and controversial region of Western Sahara which Morocco has questionably legally occupied for decades. The areas controlled by rebel groups have massive untapped phosphorus deposits. In addition, Morrocan potash is being subjected to sanctions as well.
This post was edited on 4/1/22 at 1:19 pm
Posted by Midtiger farm
Member since Nov 2014
6161 posts
Posted on 4/1/22 at 1:14 pm to
quote:

But if they can get this fact about potash so grossly incorrect, I don't trust that there was any legitimate fact checking done at all.


It really doesn't matter. Its still a global market

Last spring the price of potash was around $350/ton then the fertilizer cartels got the govt to sanction potash from Belarus and Morrocco at the same time covid strategies caused a supply and shipping crisis

It went up to $800/ton then the war started and now its $900+/ton
Posted by Bearcat90
The Land
Member since Nov 2021
2955 posts
Posted on 4/1/22 at 1:19 pm to
quote:

You do realize that agriculture is a worldwide industry?


Yes.

quote:

Yes, 85% of the potash in the US comes from Canada. However, if you take out the 2nd and 3rd largest producers, other countries will come into the market trying to buy Canada's supply.


The sourced article said "potash fertilizer". The reality is that this is not true. Potash mining perhaps.

The vast majority of worldwide fertilizers are made with ammomia, byproducts of cokemaking in the steel industry and crude refining in the petrochemical industry.

Again, would agree Russia is a leader in that arena.

Interestingly, greeniies cannot seem to fathom how if we do indeed get away from carbon based fuels / production plants, we'll be screwed for fertilizers.

One of another main ingredient for nitrogens is concrete and asphalt production. Inn N America this was always sourced with flyash/bottom ash from coal fired power plants. EPA restrictions banned a lot of that material 10 years ago or so for use in roadways due to the heavy metals in flyash, but generally it's an ingredient we don't have much of anymore in N. America and now a lot of mined potash is used instead.

I was really just taking issue with the wording of the article concerning "potash fertilizers" versus potash mining and not the OP as I'd already stated.
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