Wednesday, March 03, 2021

Agri Econ 33, High poultry, beef, corn prices

Global food price inflation esp poultry/chicken and beef. Why? Because many chickens and cows also got Covid, they also need vax to protect their high global supply?

One proximate reason is because corn -- main ingredient for poultry, beef, swine feed -- prices are back at high prices. No corn price spike last 2 years of Obama and full 4 years of Trump. Price hikes started when Biden was coming to the WH. Maybe because of his promise to cut US oil gas production to "save the planet", in the process shift to more biofuels, corn being used to feed cars, not people or farm animals.

China demand is only one of many factors. Like (a) high oil prices since Biden was elected, his campaign promise of cancel fracking in federal lands has cut US oil output; so (b) demand for biofuel rises, demand for corn in US alone rises. (c) not only cars, soon even planes will use biofuels, starting with US airlines.

Airline Execs Discuss Biofuel with Biden
Eric Worrall  March 1, 2021

Airline CEOs, Biden officials consider green-fuel breaks
By DAVID KOENIG  February 27, 2021

An FT article made good points and has good data, high China demand for corn.

China’s record corn purchases have traders wondering if bump can last 
Prices surge to near eight-year high as demand from Beijing fuels grain market rally
Emiko Terazono in London and Sun Yu in Beijing FEBRUARY 12 2021

Oil prices started rising when Biden-Dems and their "cancel fracking" policy would be in place. Biofuels are substitute for refined oil.


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