Turkeys Explode
Early birds have been flocking to the grocery to buy a turkey before the price skyrockets even further. Turkeys are now at the highest price they’ve ever been. Avian “bird” flu, supply chain delays, and general inflation have been cited as causes for the price jump. The cost of an average 16 lb. turkey was $24 last year; it’s at $32 so far this season. The USDA has reported that 6% of the turkey supply was carved out when 47 million turkeys and chickens died from the flu. The deaths include birds that were slaughtered to prevent the disease from spreading. Some shoppers are substituting Thanksgiving day hams or beef, which could support hog and cattle prices, at least temporarily.
UN Says More Fire, Drought, Flooding On The Way
The UN’s annual Greenhouse Gas Bulletin cites increased CO2 emissions and the largest increase in methane concentrations since measurements started 40 years ago. Although methane’s potency as a heat-trapping or greenhouse gas is many times stronger than CO2, carbon dioxide remains in the atmosphere for many decades. Even if we reduce emissions dramatically soon, it will contribute to global warming for years to come. The report stated CO2 concentrations reached 415.7 parts per million last year—nearly 50% higher than pre-industrial levels. The report indicates the rebound in post-COVID fossil fuel production and use, as well as off gassing from cement production, is driving the increase in CO2. Accelerating methane concentration sources are more varied now, partly due to biogenic sources. As permafrost and frozen wetlands are warmed and organic material decomposes, it releases methane.
Commodity Quiz
Which two countries have been identified as the world’s largest emitters of greenhouse gasses? The answer will be provided next week. Stay tuned!
Weekly Winners and Losers
Foreign currencies, stock index, crude, and heating oil were the biggest gainers this week. The December Euro FX was up nearly a penny and a half compared to October 21st. The biggest losers were cotton (down 3 cents per pound), coffee, sugar, lumber, and wheat. Since mid-August, December cotton has tumbled from $1.20 to 72 cents per pound.
Opinions are solely the writer’s. Walt Breitinger is a commodity futures broker in Valparaiso, Ind. He can be reached at (800) 411-3888 or www.indianafutures.com. This is not a solicitation of any order to buy or sell any market.