Economics Discussion

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Economics Discussion

Postby Sniper Angel » Wed Feb 02, 2011 12:01 am

Having a hard nit to crack on this one, any expert can share thier views.

Wheat prices have increased significantly in the recent weeks.There are various factors that may lead to price hikes in commodities like wheat. Using supply & demand analysis, explained the observed price increase.

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Postby tankee » Wed Feb 02, 2011 12:17 am

supply drop due to bad weather. Higher fuel price means higher transport cost directly affecting supply in places further away from wheat producing areas.

demand forever increasing as world population continues to grow; and increasing number of people being more affluent especially in new economic powerhouses like China and India.

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Re: Economics Discussion

Postby 3Boys » Wed Feb 02, 2011 9:22 am

Sniper Angel wrote:Having a hard nit to crack on this one, any expert can share thier views.

Wheat prices have increased significantly in the recent weeks.There are various factors that may lead to price hikes in commodities like wheat. Using supply & demand analysis, explained the observed price increase.


Are you looking for a general discussion or a technical analysis?

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Postby toddles » Wed Feb 02, 2011 9:42 am

I think this is econs homework. for an econs tutor to answer.

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Postby 30plus » Thu Feb 03, 2011 10:10 pm

tankee wrote:supply drop due to bad weather. Higher fuel price means higher transport cost directly affecting supply in places further away from wheat producing areas.

demand forever increasing as world population continues to grow; and increasing number of people being more affluent especially in new economic powerhouses like China and India.


The same argument can be used on rice as well. But rice price did not go up much. How? :lol:

Sorry I am not economist. I only come in to stir. I feel nowadays price is more sensitive to speculation than fundamental supply and demand. :siam:

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Postby UncleLim » Fri Feb 04, 2011 1:33 pm

toddles wrote:I think this is econs homework. for an econs tutor to answer.


Econs teachers are busy making a living, no time to answer questions online ! :D

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Postby tankee » Fri Feb 04, 2011 8:48 pm

30plus wrote:
The same argument can be used on rice as well. But rice price did not go up much. How? :lol:

Sorry I am not economist. I only come in to stir. I feel nowadays price is more sensitive to speculation than fundamental supply and demand. :siam:



yes, speculation plays a big part in price fluctuation.

Rice price is generally stable in Singapore as the government has a ready stockpile to meet temporary shortage and stablize prices.

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Re: Economics Discussion

Postby lynntan15 » Sun Feb 06, 2011 12:18 am

Sniper Angel wrote:Having a hard nit to crack on this one, any expert can share thier views.

Wheat prices have increased significantly in the recent weeks.There are various factors that may lead to price hikes in commodities like wheat. Using supply & demand analysis, explained the observed price increase.


Prices for wheat increased due to several factors :

Few major countries grow wheat, major exporters are from Canada, Australia and America. Canada and amex suffered cold winter and Australia suffered from flood which affect the supply of wheat.

Demand grows as govt and flour millers started to store wheat in anticipation of higher price resulting in more demand for wheat.

Higher crudes oil price caused increase in price of fertilizer which is needed for planting in an non organic way, beside increase in transportation cost. But, this has nothing to do with demand for wheat.

Growing population also create a higher demand in staple foods.

Hope that helps a bit.

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