This blog has moved. Please visit us at www.preparednesspro.com.

By Kellene Bishop

Wheat Shortages. Photo c/o bloomberg.com

Wheat Shortages. Photo c/o bloomberg.com

As of May, the U.S. just sold the very last of their wheat reserves. As of now the U.S. government wheat reserves are totally empty. The U.S. has no intention of replenishing these supplies until the prices have stabilized.

As a comparison, during the 80’s the U.S. had on hand about 358 million bushels of wheat. During the 90’s they decreased that to 133 million bushels.  Now they are at zero.

Since the U.S. government is out of storing wheat, this leaves the private sector as the primary source.  Unfortunately, (and grateful for the freedom as well) there are no minimum wheat crops to be harvested in the U.S.

Food Shortages: Wheat. Photo c/o economicsuk.com

Food Shortages: Wheat. Photo c/o economicsuk.com

As best as can be evaluated, there are just over 305 million bushels held privately and on business farms throughout the U.S. as of June of this year. That’s less than one bushel per person in the U.S. It’s also the lowest level it’s been in 60 years.

Texas has decreased their wheat crop this year by 30%.

Holdings for corn, sorghum, and rice are also at nearly zero in the U.S. Larry Matlock of the American Agriculture Movement also states that there is no powdered milk, cheese, or butter in reserve in the U.S. either. In other words, we have an entire nation living hand to mouth, much like many of the consumers in their own homes.

Chinese Wheat Crop. Photo c/o Xinhua Photo

Chinese Wheat Crop. Photo c/o Xinhua Photo

Now, let’s add another little twist. The Chinese crop of wheat is considered to be the largest in the world. Surely you are familiar with the fact that they are experiencing a record drought over the past year. Keep in mind that their consumption is the largest in the world as well. In spite of the rumors that China has 60 million metric tons of wheat in storage, there still is a genuine concern here. If they truly did have such amounts of wheat in stores why would they invest over 86 billion yuan to aid in the drought relief in this type of a market?  Additionally, no storage of the 60 million metric tons has been verified.

Egypt’s wheat reserves are at 4.023 million metric tons—which is not quite enough to get them through 2009. They have also hit record lows on sugar, rice, vegetable and soy oil resources, and rice.

What have I been telling you? Food is your BEST investment right now—whether in your own pantry or on the market. Get it and get ready for a serious challenge, folks. As I’ve said previously, please don’t allow the years of plenty to fool you into believing that they will always be there.

Copyright 2009 Preparedness Pro & Kellene Bishop.  All rights reserved.  You are welcome to repost this information so long as it is credited to Preparedness Pro & Kellene Bishop.

Subscribe to Preparedness Pro today and never miss a thing!

This blog has moved. Please visit us at www.preparednesspro.com.

By Kellene Bishop

wheat-shortages-drought-spainWhile I reported on the looming wheat shortage in detail several months ago, it has caught my attention again due to how quickly it’s coming upon us and how much worse it’s become.

A wheat shortage isn’t just confined to far off distant lands anymore.  It has definitely hit America.  Additionally, there is not a single country in the world that is not experience a wheat shortage.

Nations all over the world are reporting a shortage of wheat.  Romania lost over two-thirds of their wheat harvest last year due to drought.  Hungary, Czech Republic and Bulgaria are all in the same boat.  Ukraine lost over a third of its harvest due to flooding.  This year Argentina is planting the smallest wheat crop in over a century!  They used to be the 5th largest exporter of wheat and now they will be consigned to importing it.  Zimbabwe’s largest bread producer has announced to the public several times in the last 2 years that they were completely out of flour or only had 2 days supplies left—and that is including their emergency reserve stocks.  Accounting for over 15 nations, wheat output has been declining over the last 2 years, while population has continued to increase.  Spain and Argentina have the largest declines of 48% and 34% respectively with Poland and Canada having the least output decline of 10% and 12%.

Can you say wheat shortage?  

This is a common story among major bread manufacturers worldwide—nothing left in their stores.  Several processing plants that used to employ hundreds have literally had to shut down completely due to a lack of wheat—not money.  Wheat shortage.

The U.S. Government as a whole has a similar story as well.  In spite of laws which are still in effect to prevent this very crisis, the U.S. has exported ALL of their wheat surpluses to other nations simply so that they can survive and to prevent an even bigger economic meltdown.  In fact, though once the largest exporter of wheat in the world, the U.S. is now having to resort to IMPORTING types of wheat from other nations, paying top dollar to do so, which is obviously passed on to consumers.  In January of last year, the USDA reported that the hard wheat crop was smaller than EVER, thus forcing many buyers to spring wheat, which has escalated those prices to unprecedented highs.  Thus the price of wheat is skyrocketing due to supply and demand as well as a result of the value of the U.S. dollar.

Photo by AP Photo/Shakil Adil

Photo by AP Photo/Shakil Adil

Wheat is indeed a valuable commodity, much like gold and silver.  Since the U.S. dollar has weakened dramatically due to the excessive “bail outs” and money printing, lifesaving commodities such as wheat are being hyper-inflated.  This, in part, explains why countries such as Pakistan and China are storing wheat at record numbers even in an attempt of secrecy.  Armies aren’t just guarding weapons and gold anymore.  Many, even our U.S. forces, are guarding wheat supplies in foreign nations.  When money markets go awry, commodities such a meat, grains, and other lifesaving assets go up.

The credit eligibility of nations has been significantly downgraded as well—dramatically impacting the wheat shortage.  As a result, acquiring more wheat, seeds, appropriate amounts of fertilizer, etc. has become impossible for most nations.  Farmers in our own nation aren’t able to plant as much as in previous years to due to the tightening reign on credit and increasing taxes and export fees.

Can I say it any plainer, folks?  There is NO storage of wheat now except what is in your own home.  Take a look at your food storage.  How does that make you feel?  Safe?  Secure?  Or in need?

Is it any wonder that wheat has increased in price over 400% at the markets that I frequently shop?  World wheat prices are at record highs right now. 

I have just received inside information from two chains that formal letters are being disseminated among grocery stores across the U.S. informing employees that wheat and affected prices will be doubling by the end of the summer.  Food prices in general have experienced the highest inflation rate of the past 18 years.

Unfortunately all of these problems aren’t just affecting the wheat market.  As a result, ALL grains are increasing in prices, some such as corn and rice to record numbers as well.  Markets are depleted in soy (expected decline of 26% this year) and corn (expected decline of 46% this year) all over the world.  Is it any wonder why China’s imported 55.2% more soybeans this year than last? And yet the U.S. crop of grains is down by over 19% this year!  This also affects the feed availability for meat production.  No feed?  Then the number of cattle and fowl output will decline substantially as well.

I’m thinking that you shouldn’t be waiting for wheat to come down in price before you obtain sufficient for your family—this includes any other grains as well such as rice, pasta, bran, etc.  Remember when I told you that I was convinced that a bucket of wheat would soon be worth more than a bucket of gold?  Do you now have some semblance as to WHY I would say that? 

If you’re reading this, then you have been sufficiently warned, instructed, and encouraged.  You’ve seen evidence of wheat shortages.  You have no excuse to fail yourself or your family when a real food crisis hits your region.  You must take matters of survival into your own hands and stop being all comfy cozy and assuming that others will take care of you.  You cannot rely on the farmers to plant, on the truckers to transport, or the government to have a solution.  This isn’t to say that farmers, truckers, and government are “bad.”  They just aren’t superhuman folks.  They are HUMAN.  They can’t possibly be expected to take care of you.  Heck, some of your own parents who gave birth to you can’t even be expected to do that!  You need to take care of you, plain and simple.  Please, please get your grains now!  I assure you, a wheat famine is NOT pleasant to live through.  

Copyright 2009 Preparedness Pro & Kellene Bishop.  All rights reserved.  You are welcome to repost this information so long as it is credited to Preparedness Pro & Kellene Bishop.

Subscribe to Preparedness Pro today and never miss a thing!

Follow

Get every new post delivered to your Inbox.

Join 100 other followers