What a half hearted article.
They barely touched on the reason the prices as high as they are, instead citing ethanol and barely touching on the true reason. Over the last 2 years we have had dry weather cut production levels of wheat dramatically across the globe. No where in the article does it mention that Europe, China, Russia and several other nations throughout the world produced just a small percentage of their normal crop.
Also, in the article they fail to mention the fact that both China and India have booming populations that must be fed. Each year demand out of both countries rises around 1%.
Also forgotten, the fact that the dollar is at all time record lows, allowing other countries to buy our wheat cheaply, which they have been doing hand over fist since last fall.
Ethanol has played a very small role-if any-in the rise of wheat prices. Of course all commodities have a relationship of sorts, but to point fingers at one or two pieces of the puzzle in particular is nothing but lazy reporting.
How about the price of silver?
Lets not even think of gold but personally I am seeing more sales of gold than ever before. I figure it's speculation money, speculators are speculating the the dollar will further decline or maybe collaspe.
FYI...Latest data from the US Mint, as of 02/06/08.
US Mint Deep Storage Custodial Gold & Silver
245,262,894.04 Fine Troy OZ Gold
$10,355,539,091 Statutory Value
$221,472,396,027 Market Value London PM 02/06 $903.
7,075,171.14 Fine Troy Oz Silver
$9,147,696 Statutory Value
$111,598,820 Market Value London PM Close02/06 $16.48
By Statue,.999 gold is,$42.222 per OZ
By Statue,.999 Silver is $1.2929 per Oz