News from the Bureau of Labor Statistics this week raised concerns that our purchasing power may be in trouble. The Consumer Price Index (CPI) has risen more year over year than it has since 2008, a financial moment most remember as volatile. The 5% jump reported in May from a year ago was higher than many economists had predicted. But, this can be seen through a lens of what was happening in May 2020 and the market reaction to it. Yet prices have risen dramatically and questions remain as to whether, when and to what extent inflation will occur and how Washington will react.

Meanwhile, China’s Producer Price Index (PPI) shows a different kind of problem. Their PPI is up 9% from a year ago, and again, the fastest since 2008, the year felt like a ’round the world’. Production costs in Chinese factories are skyrocketing and consumer prices are not keeping pace.

Maine farmers blues about the climate crisis

Weather and climate are hot topics lately, and now we learn that a favorite summer fruit is in danger. Researchers at the University of Maine analyzed 40 years of data and found that temperatures in the wild blueberry growing region had risen by 2.34 ° F. While that seems like a small change, it could mean that farmers need to adjust the way they care for their crops, including increasing irrigation. It can also mean, of course, that the economy is affected. Last year’s harvest of wild blueberries was the smallest since 2004. Researchers are examining how models of climate change can inform crop planning and management in an effort to adapt to warming temperatures.

Corn and beans every Friday

Four factors contributed to a sharp drop in corn, bean and soy products on Friday. Showers were forecast for parts of Iowa and the rain is producing grain, reducing fears of a drought-damaged crop. Second, China’s agriculture minister reduced the estimate of corn and soybean products to be imported and fed to livestock. Rumors that Mexico is banning certain imports of genetically modified crops have raised fears of demand for our products. And finally, talk about some changes to the ethanol mandate that could threaten the alcohol fuel industry’s demand for corn. Friday at noon, corn for July delivery was trading at $ 6.77 a bushel, and December corn was trading at $ 6.01 a bushel. July soybeans were trading at $ 15 a bushel, down sharply from last week.

——

Opinions are writers only. Walt Breitinger is a commodity futures broker at Paragon Investments in Silver Lake, KS.

He can be contacted at (800) 411-3888 or at www.paragoninvestments.com.

it is not a solicitation of an order to buy or sell a market