Last week, the BLS released a report on November’s US export prices which have been the highest since 1984. Of great concern were agricultural prices which were up 21.4 percent from year prior. Essentially, food prices have gone up considerably for everyone around the world.
Of course what goes around comes around as we reported in National Inflation vs. Global Inflation, top global exporters to the US have also been exporting inflation into the US.
The top 3 US trading partners are showing trendlines for higher inflation but all inflation is up across the board globally.
Aside from Covid-19, labor shortages and supply chain issues, there is also the problem of climate change impacting the growing seasons of a variety of crops. News show 60 Minutes had a great news feature on how climate change is impacting the growth of grapes, essentially moving the growing region of grapes from lower latitudes to higher latitudes in the Northern Hemisphere and inversely in the Southern Hemisphere.
We doubt that only grapes are being impacted by this phenomenon so we are looking into potential investments on how to leverage this situation for maximum profit.
Stay tuned and stay solvent…