Welcome! Log In Create A New Profile Recent Messages

Deep Creek Hot Springs

The Moon is Waning Gibbous (72% of Full)


Re: SC49

All posts are those of the individual authors and the owner of this site does not endorse them. Content should be considered opinion and not fact until verified independently.

September 12, 2007 09:36AM

Soaring wheat, oil prices spark global inflation fears

As central banks prepare to cut interest rates to relieve a global credit crunch, they're being stalked by the threat of inflation.

Wheat prices rose to record highs on global markets today. Oil prices rose to near-record levels. And as pork prices soar, China posted its highest inflation figures in more than a decade.

Economics Correspondent Stephen Long.

STEPHEN LONG: Recession's been the big fear as the fallout from defaulting US mortgages drove a global credit crunch and threatens to undermine the world's largest economy.

But the question now is which is the bigger threat: the credit crunch or soaring prices for key commodities around the world?

America's central bank looks certain to cut rates next week, possibly by as much as half a per cent. But suddenly, it's been given a reminder that inflation pressures have not gone away. Overnight, contract prices for West Texas Intermediate Crude Oil rose above $78 a barrel - close to a record high - and the price of a bushel of wheat went one better.

Malcolm Bartholomaeus is a market analyst with Callum Downs Commodity News.

MALCOLM BARTHOLOMAEUS: So this morning in overnight trade in the US, it hit 900 US cents a bushel on the December contract. To put that into context, we have never had the December contract expire at above 500 US cents a bushel.

STEPHEN LONG: The cause of the latest spike? A fear that unless spring rains fall in the Australian wheat belt within the next week or two, the crop will be meagre.

But its part of a longer run trend. Wheat prices have risen 350 per cent over the past five years, with global reserves now at their lowest level since the early 1980s.

The price of other key grains has soared, too, as cars compete with cattle and the kitchen table for access to crops..............

This article was posted yesterday. Currently oil prices have risen to a new record high of $79.29. Growing climate change disruptions and world wide oil supply declines will be precipitating increasing inflation pressures.


Wizard 1214August 15, 2007 02:39PM

Re: SC49

Wizard 675August 15, 2007 10:56PM

Re: SC49

Wizard 606August 20, 2007 10:15PM

Re: SC49

Wizard 631September 09, 2007 01:19AM

Re: SC49

Wizard 627September 09, 2007 01:28AM

Re: SC49

Paul P. 580September 09, 2007 08:31AM

Re: SC49

Wizard 588September 09, 2007 01:25PM

Re: SC49

Wizard 611September 10, 2007 10:00AM

Re: SC49

Wizard 581September 10, 2007 11:54AM

Re: SC49

Wizard 592September 10, 2007 12:16PM

Re: SC49

Wizard 593September 10, 2007 12:48PM

Re: SC49

Wizard 716September 11, 2007 09:59PM

Re: SC49

Wizard 1109September 12, 2007 09:36AM

Sorry, only registered users may post in this forum.

Click here to login