Drought affecting food prices; Corn production again smaller

Corn Zea mays (Andrew Butko)

For the third year in a row, production of corn in the US is smaller than normal. Last summer’s drought in the North America, Australia, and Europe is affecting food prices (including wheat and soy, and slightly barley):

Three consecutive years of smaller U.S. corn harvests are driving inventories of the world’s most- consumed grain to a 39-year low and spurring Goldman Sachs Group Inc. to predict that prices will rise near record highs. Prices surged 44 percent since mid-June as U.S. farmers endured their worst drought in 56 years, and heat waves and dry weather seared crops from Australia to Europe. http://www.bloomberg.com/news/2012-12-11/tightest-corn-crop-since-74-as-goldman-sees-rally-commodities.html

The drought last summer in the nation’s breadbasket is starting to reflect in food costs even as falling prices at the pump are pushing down overall inflation.

The producer price index, a measure that tracks how much wholesalers pay for goods, declined 0.8% last month, but the price for food jumped 1.3%, the largest gain since February 2011, a report Thursday from the Labor Department said. http://blogs.wsj.com/economics/2012/12/13/drought-starting-to-show-up-in-food-prices/

As one of the top 10 barley producers in the world, Canada faces a problem of adapting to the ‘new normal’ of a warmer, drier climate. http://www.eurekalert.org/pub_releases/2012-12/uoa-bbb121212.php

Drought continued to expand through many key farming states within the central United States in the past week, as scattered rainfall failed to replenish parched soils, according to a report issued Thursday by state and federal climatology experts.

Drought conditions were most pervasive in the Plains states, including in top wheat producer Kansas, according to the Drought Monitor report.

Fully 100 percent of Kansas was in at least “severe” drought…in Nebraska were unchanged, with 96.15 percent of the state in extreme drought, while the situation worsened in Oklahoma, where the percentage of the state in at least extreme drought increased to 90.92 percent from 90.56 percent a week earlier.

Texas drought conditions also worsened over the last week, with more than 32 percent of the state in at least extreme drought…

The portion of the contiguous United States under at least “severe” drought expanded, however, to 42.59 percent from 42.22 percent.

Roughly 63 percent of the new winter wheat crop that U.S. farmers planted in the fall is in drought-hit areas, with the hard red winter wheat belt…http://www.reuters.com/article/2012/12/13/us-usa-drought-idUSBRE8BC0ZK20121213

European Union corn imports may be the second-highest on record this season after drought parched crops and a surge in wheat exports curbed domestic grain supply. http://www.bloomberg.com/news/2012-12-04/european-corn-imports-seen-expanding-to-second-highest-on-record.html

Dry weather also may affect production of corn in Brazil:

The planting of Brazil’s secondcorn crop in January and February may be delayed after dry weather postponed soybean sowing this year, Kemp said. http://www.bloomberg.com/news/2012-12-04/european-corn-imports-seen-expanding-to-second-highest-on-record.html

As I have been writing for some time, tougher times are coming and we will see more food inflation. And for some parts of the world these tougher times may be here now. People who can prepare, should: both spiritually and physically. In addition to the type odd weather-reduced grain yields we are now seeing, I continue to suspect that likely crop failures associated with GMO grains are putting the USA at extreme risk of being destroyed economically and otherwise (and most USA corn and soy crops come from genetically-modified seeds). Most Americans do not like to accept this, but it is nonetheless true.

Food inflation is something that I warned would likely be seen in 2012 and we are seeing what seems to be the beginning of some of it. Increases in grain prices are prophesied in the Bible:

5 When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. 6 And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.” (Revelation 6:5-6)

Flood, droughts, earthquakes, and weather problems contribute to food shortages, higher food prices, and sometimes famines. Food inflation seems to be occurring.

The disciples asked Jesus about the end:

3 Now as He sat on the Mount of Olives, the disciples came to Him privately, saying, “Tell us, when will these things be? And what will be the sign of Your coming, and of the end of the age?” (Matthew 24:3)

Notice some of what Jesus taught in response:

4 And Jesus answered and said to them: “Take heed that no one deceives you. 5 For many will come in My name, saying, ‘I am the Christ,’ and will deceive many. 6 And you will hear of wars and rumors of wars. See that you are not troubled; for all these things must come to pass, but the end is not yet. 7 For nation will rise against nation, and kingdom against kingdom. And there will be famines, pestilences, and earthquakes in various places. 8 All these are the beginning of sorrows. (Matthew 24:4-8).

The “beginning of sorrows” (Mathew 24:7-8) begins before the Great Tribulation (Matthew 24:21), the time of Jacob’s trouble (Jeremiah 30:7). We seem to be in the beginning stages of these sorrows.

Mark recorded the same account of this time from his perspective:

³ Now as He sat on the Mount of Olives opposite the temple, Peter, James, John, and Andrew asked Him privately, ⁴ “Tell us, when will these things be? And what will be the sign when all these things will be fulfilled?” ⁵ And Jesus, answering them, began to say: “Take heed that no one deceives you.⁶ For many will come in My name, saying, ‘I am He,’ and will deceive many. ⁷ But when you hear of wars and rumors of wars, do not be troubled; for such things must happen, but the end is not yet. ⁸ For nation will rise against nation, and kingdom against kingdom. And there will be earthquakes in various places, and there will be famines and troubles. These are the beginnings of sorrows.⁹ But watch out for yourselves, for they will deliver you up to councils, and you will be beaten in the synagogues. You will be brought before rulers and kings for My sake, for a testimony to them. ¹⁰ And the gospel must first be preached to all the nations. ¹¹ But when they arrest you and deliver you up, do not worry beforehand, or premeditate what you will speak. But whatever is given you in that hour, speak that; for it is not you who speak, but the Holy Spirit…” (Mark 13:3–11).

Thus, in both Matthew and Mark it is clear that a time called “the beginning of sorrows” precedes the Great Tribulation.

Droughts, earthquakes, and odd weather problems and the resulting reduction in grain yields should serve as a wake-up call.

As Jesus said:

37 And what I say to you, I say to all: Watch! (Mark 13:36-37)

The time is coming when the USA will have severe food shortages–more than the current food inflation. And at that same time, the USA may have to provide grain to China and other creditors that it owes when some Americans will be starving.

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