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Letter Re: A Significant Wheat Shortage is Looming in the US
Mr. Rawles,
I found an
interesting and alarming article from CattleNetwork.com on grain supplies.
Especially note these parts:
"In fact, export sales of U.S. wheat are beginning to look like panic
buying. Overseas buyers are purchasing ahead anticipating the U.S. will run
out of
wheat, which is exactly what may happen for hard red winter and white wheat.
Wheat exports simply can not be sustained at current levels. Either price will
have to increase more to ration the remaining supply or, as was rumored in
grain markets this week, the U.S. government will step in to embargo further
wheat exports."
and,
"In the report, U.S. ending stocks of wheat, corn, and soybeans were all
lowered, mostly because of stronger than expected exports. U.S. wheat ending
stocks
will be the lowest in 32 years, although global ending stocks were raised slightly.
Corn ending stocks were lowered by 100 million bushels, however, U.S. ending
stocks are still at a comfortable and market neutral level. Soybean ending
stocks were alarming. The USDA lowered them to 185 million bushels, down 68%
from last year at this time and only 6% of annual usage. That means at the
end of this soybean marketing year; next August, the U.S. will have about 3
weeks and 2 days of soybean inventory left in the bottoms of bins scattered
around the country." - CA in Oregon
JWR Replies: Let this serve as a warning: It is high time
to stock up if you have not done so already. A family of four
should have at least 600
pounds of hard red wither wheat on hand. Shortages push prices only one direction.
Consider your wheat better than money in the bank. Wheat at $10 per bushel
may seem high now, but just wait a year or two. You will be very glad
that you bought when you did. OBTW, please try to give the SurvivalBlog
advertisers your business, first. Thanks
