Inflation and spending habits

[HDRider]

I think that would just lead to more people not eating beef and finding alternatives, what would the price have to be in the grocery store to make those numbers work? For freezer beef that means I would have to charge in the neighborhood of $7-$8/lb HW to come out on the deal, I don't see average people being able to afford that.

That would open the door wider for fake meat

 

[Dave]

That's what they should be going for when fertilizer is a 1K per ton and diesel heading towards 4 bucks.

I wish we were headed to $4.00 diesel. That would be a decrease in our price. I just filled up for $4.23 and I see $4.50+ around here.

 

[HDRider]

I wish we were headed to $4.00 diesel. That would be a decrease in our price. I just filled up for $4.23 and I see $4.50+ around here.

$3.69 here

 

[Rmc]

What did you expect fuel and oil prices to do when day 1 executive order limited oil production not to mention all actions since.
It is easier to push a "green" agenda when the price of oil products are through the rough price wise.

 

[hurleyjd]

https://www.cnbc.com/2021/12/30/us-oil-production-to-increase-further-in-2022-oil-expert-dan-yergin.htmlhttps://www.cnbc.com/2021/12/30/us-oil-production-to-increase-further-in-2022-oil-expert-dan-yergin.html

Production of oil in the USA is controlled by the price of a barrel. Wells when not profitable are shut in until pricing improves and a profit can be made. From the article posted looks like the USA is on the mend as far as oil production goes.

 

[Dave]

The wife stopped at the dollar store in Baker today. She said everything there is now $1.25. This inflation is out of hand when the dollar store is now the dollar twenty five store.

 

[Named'em Tamed'em]

The wife stopped at the dollar store in Baker today. She said everything there is now $1.25. This inflation is out of hand when the dollar store is now the dollar twenty five store.

I bet they won't change the sign!

 

[Caustic Burno]

https://www.cnbc.com/2021/12/30/us-oil-production-to-increase-further-in-2022-oil-expert-dan-yergin.htmlhttps://www.cnbc.com/2021/12/30/us-oil-production-to-increase-further-in-2022-oil-expert-dan-yergin.html

Production of oil in the USA is controlled by the price of a barrel. Wells when not profitable are shut in until pricing improves and a profit can be made. From the article posted looks like the USA is on the mend as far as oil production goes.

Has nothing to do with the price of a gallon of gasoline.
It's not run in American refineries it's sold on the commodity market competing against all the other oil producers. OPEC controls the commodity market and have for decades. The cartel meets monthly and adjust production to control prices.

 

[Caustic Burno]

Look for fuel to go higher short term . Largest gasoline refinery in the country is cut back by a third due to mechanical issues.
That's over 8 million gallons a day.

 

[C-Ranch]

I got a quote for this year's farm fuel and was quoted $3.19 for today. No nobody would guarantee prices for tomorrow as they seem to adjust every day. I paid $2.01 in 2021 and $1.88 in 2020, inflation is going to make it very difficult on everyone this year. I think the Government wants everyone to be broke and relying on them once the dust settles. I sure hope things can get turned around before it to late.

 

[Rmc]

Production of oil in the USA is controlled by the price of a barrel. Wells when not profitable are shut in until pricing improves and a profit can be made. From the article posted looks like the USA is on the mend as far as oil production goes.

To a point yes. But when you take millions of acres off the availability list . And add a ton of additional regulations that cost big bucks to even to get a permit to drill it decreases supply and opec takes advantage and jumps the price per barrel.
That doesn't even get into the fact that no new refineries have been permitted for almost 40 years

 

[Hippie Rancher]

Exclusive: oil companies’ profits soared to $174bn this year as US gas prices rose

Exxon, Chevron, Shell and BP among group of 24 who resisted calls to increase production but doled out shareholder dividends

www.theguardian.com

 

[Rmc]

A short time ago us was a net exporter of oil for the first time in almost 70 years . That is no longer the case.
Their are many ways to limit oil production besides out right bans.
Oil wells aren't like a light switch . You don't just turn them off when price drops then magically flip the switch back on . Many times it takes a long time and a lot of effort ,time and money to bring the well back into decent production levels.
Permitting to drilling to production doesn't happen over night either. It can take 2-3 years from initial planning stage to actually selling the first barrel of oil .

 

[Caustic Burno]

To a point yes. But when you take millions of acres off the availability list . And add a ton of additional regulations that cost big bucks to even to get a permit to drill it decreases supply and opec takes advantage and jumps the price per barrel.
That doesn't even get into the fact that no new refineries have been permitted for almost 40 years

Last new major refinery was built in 77 by Marathon.

 

[HDRider]

$75 for a 47 pound bag of Purina Pro Plan at TSC - Crazy

 

[HDRider]

Brent surpassing $100 a barrel is almost a given at this point, energy analysts say; but now, an increasing number of forecasters predict the commodity surpassing $125 a barrel and even higher.

″Given that you've got this underinvestment in capital exploration, we're running low on physical oil, we're running short of supply," John Driscoll, director of JTD Energy Services, told CNBC on Monday. "There is a scenario where we could vault past $120, even as high as $150" a barrel.

Oil could vault as high as $150 a barrel, veteran analyst warns, as undersupply meets surging demand

Money is pouring into investments in oil-related stocks, and international oil companies are raking in record profits.

www.cnbc.com

 

[DNelson]

We were getting 4 bucks a pound in 2012! We weren't getting skinned by JBS.

This seems to give a good explanation of what causes high consumer prices and low producer prices. https://www.thefencepost.com/news/imports-of-cattle-and-beef-hit-historical-high-in-2020/

 

[Cattlelow]

We have 4 vehicles. My 02 pickup has 307,000 miles on it. The little Kia commuter car has 277,000. The wife's Ford Escape has about 106,000. The fourth is a '97 Ford F-350 flatbed that is the feed truck. I have no idea how many miles it has. The idea of buying a newer vehicle has never even crossed my mind.
The wife grew up poor and has had to be tight with money. She darns my socks if they get a hole in them. When she wants to go shopping for cloths her sister and her go to the Goodwill, Salvation Army, etc in an up scale wealthy area. They get high quality cloths that have barely been worn for pennies on the dollar. She has zero cloths that were purchased new. We live well within our means.

Hubs has a 2000 GMC with 340k. He says he's keeping it. Cheaper to replace a motor than buy anything else.

 

[D2Cat]

You ever receive one of those post cards with a picture of your property and wanting to know if you'll sell?

I had one laying on my desk and after a few days decided to call an just shoot the shxt. Guy said he was buying the houses in a particular zip code. Finds properties that have not been purchased in the last three years, gets a picture from google earth, puts that on the card and sends.

Told him I wasn't interested in selling the property in the picture but had something else I'd consider. I had offered the property to my ins. agent and gave him a price. He couldn't make a decision, and I had talked to him a few times about it. It was a commercial bldg. Two days after talking to the guy on the phone he made an offer. The offer was 50K more than I tried to get from the ins agent.

 

[davesr]

While I agree NAFTA was an awful agreement, its been going on for a while. I found this set of charts to be helpful... https://wtfhappenedin1971.com/. You could also argue everything changed after Kennedy's assasination.

That is stunning information!