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++This Is Not Good++Grain shipments stalled in credit drought++

http://www.financialpost.com/news/story.html?id=866310

Grain shipments stalled in credit drought

John Greenwood, Financial Post Published: Tuesday, October 07, 2008

The credit crisis is spilling over into the grain industry as international buyers find themselves unable to come up with payment, forcing sellers to shoulder often substantial losses.

Before cargoes can be loaded at port, buyers typically must produce proof they are good for the money. But more deals are falling through as sellers decide they don't trust the financial institution named in the buyer's letter of credit, analysts said.

"There's all kinds of stuff stacked up on docks right now that can't be shipped because people can't get letters of credit," said Bill Gary, president of Commodity Information Systems in Oklahoma City. "The problem is not demand, and it's not supply because we have plenty of supply. It's finding anyone who can come up with the credit to buy."

So far the problem is mostly being felt in U.S. and South American ports, but observers say it is only a matter of time before it hits Canada.

"We've got a nightmare in front of us and a lot of people are concerned it's going to get a lot worse," said Anthony Temple, a grain marketing expert based in Vancouver.

The port troubles occur as financial institutions worldwide experience an unprecedented level of failures; even the strongest global banks are taking shelter in government bailouts. Tuesday, the U.K was expected to invest as much as £45-billion ($87.01-billion) in three of the country's biggest banks, while the U.S. government rushed to put in place its US$700-billion rescue package for beleaguered financial market players. Ottawa has so far resisted pleas for direct financial aid for exporters.

Access to credit is key to the survival of maritime trade and insiders now say the supply is being severely restricted. More than 90% of the world's trade by volume goes by ship.

The Baltic Dry Goods Index, the main measure of shipping rates, is down 74% from its high back in May when trade with China was still strong.

"The credit crisis has made banks nervous and the last thing on their minds is making fresh loans," Omar Nokta, an analyst at investment bank Dahlman Rose, said in an interview with Reuters.

While shipping has always been a cyclical industry whose fortunes rise and fall with the global economy, analysts said the current crisis over the drying up of credit is something they have never seen before.

Jason Myers, head of the Canadian Manufacturers and Exporters, said exporters across Canada are getting caught up in the turmoil as customers delay payments, forcing them to shoulder the cost.

"What some companies are saying is we can't pay you until our customer pays us, so it becomes a question of who bears the financial risk and the cost," Mr. Myers said. "We're hearing about it more and more."

What that means is that manufacturers are getting hit as revenue slows and long-time customers disappear from the order book altogether. As profits decline, investment in product development starts to fall, too, he said.

The Canadian Wheat Board, one of the world's biggest grain marketers, has yet to refuse a customer because of poor credit, according to a spokesperson. "As of this moment we haven't run into that problem," said Maureen Fitzhenry.

Officials at Viterra, Canada's leading grain handler, were not immediately available for comment.

The meltdown in financial markets has resulted in a dramatic slowdown in maritime trade, with major ports in Canada and the United States preparing for sharply reduced activity after several of the busiest years on record.

Statistics from the Port of Vancouver have yet to officially register a drop but at Long Beach and Los Angeles, among the biggest U.S ports, imports have already declined 9% this year.




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Just bought $300 worth of food, instead of a gold coin.

"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
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I was going to buy a gold coin with this paycheck, but I went to a grocery store, instead.

government of the people, by the people, for the people
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It sounds like DEFLATION is getting worse.

"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
---

government of the people, by the people, for the people
---

Letters of Credit

This is pretty serious. Here a thread of mine I posted earlier with another article on this http://www.dailypaul.com/node/68328 .

Freedom brings People together

Ron Paul was right

Last week during an

Last week during an interview which included Peter Schiff there was another guy also part of the interview who was quite frantic about there being food shortages on the way. That guy said that fertilizer stocks were down 30-40% because the investors expect that farmers will not be able to get the financing they need for the coming years crops. When Schiff talked about the bailout being a bad idea that other guy kept saying how he agreed with Peter, but that the lack of liquidity might result in food shortages which would result in many people dying. That guy was making it sound as though we had no choice but to pass the bailout, because otherwise people would die of starvation, etc.

I was expecting the food shortages that were all in the news back in the spring to resurface as major issues again, anyhow. If I'm not mistaken, this past growing season was shorter because of the weather and that big flood in the middle of the country wiped out much of the food that was growing there (meaning less reserves). Now more recently I've been hearing that we're going to have a long winter, so....

...

It is good news and it is bad......

because our country will start to realize we need to support local farmers and invest in new farming!
People buy ranches or farms, I see a big boom in this industry if our economy is going to tank, people will stick to the basics, and thus farming should be looked into!
__________________________________________________________
"The real terrorist's are in this country and they are not planning to blow us up, but rather, take our money, our freedom, and our country."

__________________________________________________________
"The real terrorist's are in this country. They are not planning to blow us up,......... but rather, take our money, our freedom, and our country."

You know, you still have to buy the

grain or seeds to plant and the fertilizer and the gas for the tractors, etc. etc.

Monsanto now controls all the major grains and are genetically altered, and are hybred (which means the seeds from the crop cannot be re-planted for next year's crop). Mandates of 15% of corn go for fuel. Huge, corporate farms being paid millions for not farming, because they bought the farm land to lay idle.

The food shortage and death of millions is part of the plan also. We must keep our heads and seek out local farmers and offer to trade services. Offer to buy a cow for them to keep so you can get milk, and they can have the extra milk to pay for it's keep. It's against the law to buy raw milk but if you own a cow...

Get out of the cities and and do this ASAP. Keep your guns loaded as the others will swarm out of the cities and be looking for YOUR food!

What we see here - there no easy answers - but do something!

http://www.localharvest.o...

http://www.localharvest.org/ - Local Harvest / Farmers Markets / Family Farms / CSA / Organic Food

Only the acceptance of the truth can defeat systemic evil.
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http://www.statenullification.com

Have you forgotten the whole NWO thing?

we're not going back to kansas here. if you want the free ranching life, you'd better join the fight now.

Good point!

Freedom brings People together

Ron Paul was right

Is it Kissinger's birthday today?

Go depopulation go! 100m this year and counting.

"He who controls the food supply of a nation controls his citizens" -- whoever the F said it.

Oh for the small minority who wishes for SOLUTIONS rather than rants >>> http://actiontrigger.no-ip.org/

I believe it was "money" supply

Rockefeller

It was money but the quote

It was money but the quote comes from Mayor Rothchild.

bigmikedude's picture

I'm telling you,

Buy noodles. And I highly suggest to all, if you don't have a vacuum packer, get one. Reynolds make a great little gadget. It's called the Reynolds Handi-vac. It's cheap too, and so are the ziplock bags it uses, but if you are creative, you can re-use the ziplock bags that it works with. When you wash the bag lift gently on the bottom of the textured plastic inside the bag that aids in the air evacuation. They peel right up so you can wash any juices out from behind them once you carefully turn the bag inside out. We found ours at Sweetbay, that bought out Kash-n-Kerry.

damn its

getting bad yo, maybe I'll move out to the family farm......

I agree.

It is not a bad time to look into getting a farm or ranch, there is so much opportunity in it.
__________________________________________________________
"The real terrorist's are in this country and they are not planning to blow us up, but rather, take our money, our freedom, and our country."

__________________________________________________________
"The real terrorist's are in this country. They are not planning to blow us up,......... but rather, take our money, our freedom, and our country."

Looks like another trip to

Looks like another trip to BJs for another 50lb. bag of Extra Fancy Whole Grain Rice this weekend. And maybe another order of oxygen absorbers.

My business

is natural foods --- specializing in organic whole grain foods. Believe me, prices have already touched the ceiling. Does this mean they'll be going through the roof?

If these banks would take their heads out of their bureaucrASSy, they would know the only 'sure' credit applicant would be to a company dealing in commodities such as grains right now. Trinkets from China and wide screen TVs from Mexico, well, that's another story . . . but the necessities of life?

Instead of bailing out the criminals on Wall Street, the government should be backing loans for US grain importers ---

food prices could skyrocket

bump

2Chronicles 7:14 If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.

I don't think so.

"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
---

As I understand, during the Great Depression, food was not delivered to cities due to credit problems like the one we are seeing. As you know, this was a DEFLATIONARY depression.

government of the people, by the people, for the people
---

i agree...

they will probably crash first in the short term...the problem is that it is happening in South America also...that is why i expect in the longer term an explosion in price. this is due to the extra expense of getting the grain sold. but what will happen is that grains will be very slow getting to the countries that need them most...causing massive food problems and shortages...then the price will explode...at least at the receiving end.

2Chronicles 7:14 If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.

They will, as soon as the

They will, as soon as the current liquidity shortage stops holding back the Hyperinflation Tsunami. It's coming soon.

SUPPORT OUR FOUNDERS' AMERICA
Support the Constitution of the United States

SUPPORT OUR FOUNDERS' AMERICA
Support the Constitution of the United States

exactly as planned....

Yet another phase in the plot to bring humanity to it's knees so that soon they would beg to be saved by the very tyrants that enslaved them.

Batten down the hatches mates, she's gonna blow like hell.

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Hey Archons', we are taking our planet back and there's nothing you can do about it!