Harvest and higher prices

[Murphy Siding]

dehusman

Murphy Siding

 I keep reading about congestion, car shortage, increased oil traffic pushing the grain to the back seat, etc...  In a capitalist economy, isn't this just a classic case of supply and demand? 

..... And in a related story AAR carloading figures just released show that grain carloadings YTD are 19% above 2013 levels for US roads and 17% above 2013 for Canadian roads.

https://www.aar.org/newsandevents/Freight-Rail-Traffic/Documents/2014-09-04-railtraffic.pdf

 

    Was 2013 an average year, or a down year to compare to?  Just curious.

[Euclid]

I see a lot of basic price inflation in groceries.  If it seems surprising, it is only because we are being told that inflation is minimal.  Not only are grocery prices rising, but the quality is dropping as another response to the supplier cost pressure.

I was told by somebody the other day to expect an ag recession next year because Minnesota has had the largest corn crop in history, and that will drive down the value.  But then there is the issue of whether the railroads can move that record crop without driving up the cost of corn to the food producers. 

[dehusman]

Murphy Siding

 I keep reading about congestion, car shortage, increased oil traffic pushing the grain to the back seat, etc...  In a capitalist economy, isn't this just a classic case of supply and demand? 

..... And in a related story AAR carloading figures just released show that grain carloadings YTD are 19% above 2013 levels for US roads and 17% above 2013 for Canadian roads.

https://www.aar.org/newsandevents/Freight-Rail-Traffic/Documents/2014-09-04-railtraffic.pdf

 

[The Butler]

Mookie - I think it is the wholesalers and retailers anticipating an increase in price.  The same as when oil goes up $50 a barrel and the gas price at the local station goes up the next day or week. 

[Mookie]

Paul - They can run to Congress all they want right now since it is in recess until mid-November.  Meanwhile a roast for two will run about $15-20.  Relief won't come very fast that I can see.  So why the big jump now?

[CSSHEGEWISCH]

In theory this would be true.  Since you live in a farm state, I'm sure that you're quite aware that this just isn't going to happen.  As soon as rates rise based on increased demand, the farmers are going to run to Congress demanding that rates, car supply, etc. be regulated.

[Murphy Siding]

    Being an election year, and living in a farm state, we're hearing a lot right now about the railroads inability to move grain instantly and cheaply.  I keep reading about congestion, car shortage, increased oil traffic pushing the grain to the back seat, etc...  In a capitalist economy, isn't this just a classic case of supply and demand?  In which case, the cost for rail shipment would rise, allowing the railroads to afford more capacity?