Herodotus Posted October 26, 2022 Share Posted October 26, 2022 Brace yourself, fuel and food cost surges are coming: Yeah, this one is alarming to me. I get it, most of you grew up middle class. I grew up skirting just above economic collapse. I remember the days where the school lunch was the only meal for the day. I remember mom missing a meal because she wasn't hungry. It was only when I was a bit older I realized it was either I eat or she did. I always, even from the time I was very young (say 5 or 6), able to discern my family's economic health by what was in the fridge. Steak, hamburgers, junk food, cheese, lunch meat, potato chips? Pay day had just happened, and times were good. Chicken breasts, pasta, ravioli, we were doing okay. Beans, rice, hot dogs? We were fucked. Mom was not hungry? We had no money. Sadly, we are going to see a lot of children going hungry in our country this winter. I won't bring up the war and our ridiculous foreign policy that caused it. I won't blame dems or republicans, but I will say a lot of Americans are going to be hurting this winter. . . . Quote The shortage of the fuel used for heating and trucking is a key worry for the Biden administration heading into winter -- and ahead of the November election. National Economic Council Director Brian Deese told Bloomberg TV Wednesday that that diesel inventories are “unacceptably low” and “all options are on the table” to build supplies and reduce retail prices. The US is has just 25 days of diesel supply, the lowest since 2008, according to the Energy Information Administration. At the same time, the four-week rolling average of distillates supplied, a proxy for demand, rose to its highest seasonal level since 2007. While weekly demand dipped slightly, it’s still at highest point in two years amid higher trucking, farming and heating use. The diesel crunch comes just weeks ahead of the midterm elections and has the potential to drive up prices for consumers who already view inflation and the economy as a top voting issue. Retail prices have been steadily climbing for more than two weeks. At $5.324 a gallon, they’re 50% higher than this time last year, according to AAA data. Nationally, stockpiles have drained as refiners entered maintenance season and as Russia’s war in Ukraine tightened global supplies and limited imports. Market backwardation -- where prompt deliveries are priced at a premium over future deliveries -- has made building inventory extremely costly, feeding into a vicious cycle of tight supplies and price spikes. In New England, where more people burn fuel for heating than anywhere else in the country, stockpiles are less than a third of typical levels for this time of year Diesel Supply of Just 25 Days Poses Problem for Biden (yahoo.com) Quote With the umpteenth diesel price increase just around the corner, food security will become problematic as the high fuel price will result in rising input costs and subsequently higher food prices. After the most recent increase in the diesel price, consumers are already paying R8 more for the commodity than they did this time last year. This is before an expected rise of more than R1 in November. Trading Stocks For Beginners : How To Start Trading Stocks, Paperback Ad eBay The new planting season recently started, and the already extremely high input costs farmers must deal with are now even higher. “Even with the 10 and 15c per litre increases and seen in perspective, the diesel price was already a huge challenge for farmers,” says TLU SA general manager Bennie van Zyl. “It's about supply and demand - there is an extremely high demand for diesel and globally we are facing an energy crisis. The European winter has just started and there is already a huge shortage of gas.” Farmers' input costs include seed, fertiliser, lime, fuel, pesticide, insurance, price hedging, electricity and maintenance. The increase in the fuel price must be put in context. “This has a direct influence on various factors and thus increases the costs of almost every item in the chain of essential survival tools. The costs also then increase for the farmer and seen in the current prices that the farmer get on the market, this is an extremely serious matter as there are farmers who are currently throwing products away as they are not economically marketable due to the poor prices that naturally is caused by the weak buyer's market, which financially has to use its money for essentials only, as there are no financial capacities to be able to afford a healthy plate of food every day," explains TLU SA’s Erika Helm. This ripple effect is not going to be clearly visible now, but it must be considered that if the farmer does not make a profit, he cannot undertake the same plantings as the current year in the following planting seasons, due to a deficit in finances. Banks are reluctant to provide loans due to uncertainty around land expropriation. “This means in reality that there is the prospect that there will be a serious decline in future plantings which will cause a food shortage,” TLU SA said. How the high diesel price poses a risk to food security (msn.com) Quote Link to comment Share on other sites More sharing options...
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