3 ms·
This thread makes some claims which seem contradictory, or at least unusual. [0] claims that a rise in the price of wheat futures caused more wheat to be plante
by brian_cloutier 5y ago
This thread makes some claims which seem contradictory, or at least unusual. [0] claims that a rise in the price of wheat futures caused more wheat to be planted; fair enough. However, [1] claims that there is no wheat shortage, there is instead a shipping shortage, and [1] and [2] both claim that investors are unreasonably panicked, because there is not actually a wheat shortage.
However, I really don't see the distinction between a "wheat shortage" and a "shipping shortage"; as the thread notes, in either case there are people without wheat. Areas with wheat shortages are going to have higher wheat prices, doesn't matter if there's plenty of wheat somewhere else!
In [0] markets are good because the higher futures prices correctly stimulated enough production (which is strange because, if true, it means the inflated futures prices were _incorrect_). However, the markets which were smart enough to stimulate additional production were not smart enough to stimulate additional shipping.
In [1] and [2] the higher prices (reacting to "a very real shipping problem") are nothing but panic, and even make it "harder [...] to get new import shipments launched")
How can inflated prices be both the poison and the antidote?
[0]: https://twitter.com/SarahTaber_bww/status/1507776815334633472 https://twitter.com/SarahTaber_bww/status/150777681533463347...
[1]: https://twitter.com/SarahTaber_bww/status/1507776822339067908 https://twitter.com/SarahTaber_bww/status/150777682233906790...
[2]: https://twitter.com/SarahTaber_bww/status/1507776824482353167 https://twitter.com/SarahTaber_bww/status/150777682448235316...
- jefftk 5y ago> I really don't see the distinction between a "wheat shortage" and a "shipping shortage" The distinction matters a lot if you're trying to solve the problem. I saw lots of people suggesting a few weeks ago that the US change policy to cause more wheat to be produced, which would only help with the former.
- brian_cloutier 5y agoSure, of course, but that doesn't explain why price increases due to a "wheat shortage" are just while price increases due to a "shipping shortage" are panic.