Author Topic: need a lil bit of help  (Read 8954 times)

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Offline sconosciuto

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  • A man of extremes
Re: need a lil bit of help
« Reply #50 on: September 23, 2010, 11:50:53 PM »
The only reason I could see for wheat prices rising is the cost to haul them across country, which is ultimately atributed to rising petrol costs.....right

Oh man, where do I start. ???  I really enjoyed your original tirade on the comments by RoadPizza but I truly hope there is some level of sarcasm I'm not picking up here.  If you really believe this I hope you didn't lose Alan Greenspan's phone number, perhaps you should give him a call and maybe he can expand on your ultra simplistic viewpoint of the economics of raw food prices.  Wheat is a commodity good and like many things in life it's price is primarily determined by supply/demand, while cost to deliver to market is variable cost typically absorbed by the supplier.  Transportation cost doesn't directly and immediately drive price rather it drives a suppliers ability to supply and be profitable at a given demand.  An increase in transportation cost can mean a decrease in supply thus an increase in price.

Wheat (as with corn, rice, etc) is a food supply and thus it's demand is increasing with our out of control world population growth while usable farmland and resources to produce are somewhat limited. Other factors driving supply/demand: droughts, bumper crops, crop diseases, natural disasters, increasing/decreasing crop yields, modern day use of food supply as fuel, etc.....  Supply and demand is a very fine line and under certain circumstances can drive price drastically in either direction.  If you've ever lived in an area where supply of goods has been temporarily interrupted for some reason (such as a major storm or other disaster) you know how fine that line of supply/demand can be and the impact it can have on price.  Flour is actually a finished good so to make things more complex you need to factor in the economics of producing that finished good....

There are many factors that contribute to price increases of flour, petrol is not a major driving force.  If you believe that the cost of flour couldn't double, triple or quadruple (although not likely in the short-term) you need to come back to reality of life and it's uncertainties.  It wasn't long ago that we were all paying $1/gallon for gasoline...
« Last Edit: September 24, 2010, 08:29:45 AM by sconosciuto »

Offline braddonbach

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Re: need a lil bit of help
« Reply #51 on: September 30, 2010, 08:40:39 PM »
Well i wanted to thank ALL of you, I got the pizza where i WANTED it to be took a half day to make some for the 30 people at work i made 6 pizzas, they LOVED it, I just finished the ingredient list for the dough with a couple new secret ones to give it some flavor.