Secular Up Trend In CRB Foodstuffs

Currency devaluation drives inflation. CRB Foodstuffs (butter, corn, hogs, sugar, wheat, etc) are extremely sensitive to it (devaluation). Rising prices, particularly food prices, tends to increase the dependency of the public on social programs. Inadequate or failed social programs, which often work contrary to market forces, often fester into public "rage" over time. This dependent and vicious cycle, however, will continue as long as devaluation remains an acceptable cost/benefit option. In other words, kick the can down the road as long as possible, because the alterative is far worse.

Expect some experts to call "double top" soon. A break to new highs, however, appears inevitable. Discussions about more quantitative easing (QE3), receiving very little public attention, reveals more about health of the recovery than a month’s worth of headlines on the subject.

CRBFoodstuffs And Year-over-Year (YOY) Change:


Headline: Authoritarian governments start stockpiling food to fight public anger

Commodities traders have warned they are seeing the first signs of panic buying from states concerned about the political implications of rising prices for staple crops.

However, the tactic risks simply further pushing up prices, analysts have warned, pushing a spiral of food inflation.

Source: telegraph.co.uk