Well I am not a farmer, but what I have been hearing on the news was that here in NSW many farmers did not get the follow up rains they needed for their grain crops and as a results the yields were going to be down. Not a total write off but about 50- 60% what they would get with the extra rain.
Couple weeks ago, after hearing that the price of rice in Thailand hit U$1000 a ton (that is $1 a kilo )in bulk quantities, I bought 5 kg sack of rice and it was still only about $5.00 at Woolies. Obviously someone is sleeping at the wheel there. I reckon that will last me a year, I live by myself only, but rice keep no problem. I was married to Asian woman and we used to get 5 or 1o kg sacks and would use them in 6 months the whole family, 4 of us.
I thought of getting some flour as well, I have a bread maker and can make a mean carrot cake, also the odd dumpling. Flour does not keep as well as grain. Anyway, the local Vietnameese baker put the price of bread from $1.30 couple years ago to $1.50 at first and now to$1.70. Still a bargin compared with supermarkets.
There is a shortage of grain in the world atm mainly due to competition for grain from ethanol producers. But there will be a limit where to high a price would make the ethanol uncompetetive - too dear.
And the farmers world wide are likely to step a their production. I know here in Australia the old Wheat Board used to limit how many acres the farmer could plant to get their floor price. I believe there is a lot of spare capacity. In Us they have been paying farmers NOT to plant wheat and other produce.
So it is only matter of time IMO before the supply adjust itself to the demand.
