Price of Wheat, Wow!

[Peter Seltzer]

I was just reading our local newspaper and the bakeries around here are really struggling due to the huge increase in the price of wheat to make flour.
It was $ 27.00 at Christmas and now the same 100lb bag is $ 57.00.

Typically there is a three month surplus now only 25 days. This is due to farmers switching over to subsidized crops such as ethanol.

This bakery has been a local favorite for over ninety years and has the best bakery style pizza I have ever had, thick crust with awesome sauce etc...
You can't drive by the place or you will have to do a u turn because you get hungry thinking about the pizza. The problem is the owners are raising their prices to cover the increases as we all do in our business. They are very concerned as the customers are not coming in as frequently so business is falling fast.

My good friend owns my local coffee and bagel shop and he told me his bagels have cost him double what he paid a year ago to buy them from the bagel guy. He just made it through the year by the skin of his teeth. His wife a school teacher just got laid off as well, Ouch! He now has to cover the health insurance. All the towns around here are laying off teachers etc.

Do I live in a bubble or is it the same where you all live.


My customers are asking me to give estimates now and seem very focused on cost. I think when gas hits $5.00 a gallon we will see a huge impact on our own service companies. I do not move the truck anymore unless it is to go to a scheduled job. I try to take the minivan.

My friend and customer owns an appliance store and service company and he charges $ 125.00 just to show up at the door and $ 110.00 per hour labor. His business is way off as well.
I know just add it into the cost of the job but that is BS. People seem to careless right now around here about cleaning their carpets.

Check out the article about mortgages and credit scores in today's Boston Globe at www.Boston.com, this is scary. I am trying to sell my house and between the new credit score requirements and the falling values of homes two potential buyers have been declined so far. I have lost 17% on a home worth $350,000.00 last year. It is a modest 130 year old colonial at the bottom of what is available in our town. The founder of EMC is building a sixty million dollar home and complex here in Hopkinton. It has a full indoor ice rink, horse stables, indoor pools it is incredible. The average home being built is a million plus now. The schools are great here so I am hopefull I can sell it quick, it is priced below market value and I want to get my equity out before things get worse. I have been here for a long time, 29 years.

Sorry about the tone of the post but I just was curious if the same is going on in your neck of the woods. In years past and very recent years in fact there were bidding wars on a home for sale around here. It was not unusual for a house to sell for fifty thousand over asking price. Times are a changing!

Happy Easter!

Peter

 

[encapman]

Interesting story Peter. It sounds very much like one of the prophecies in Revelation foretelling crazy high prices for everyday commodities....

(Revelation 6:5-6) 5 And when he opened the third seal, I heard the third living creature say: “Come!” And I saw, and, look! a black horse; and the one seated upon it had a pair of scales in his hand. 6 And I heard a voice as if in the midst of the four living creatures say: “A quart of wheat for a de·nar′i·us, and three quarts of barley for a de·nar′i·us; and do not harm the olive oil and the wine.”

When Revelation was written, a "denarius" was considered to be a typical day's wage. In other words, everyday staple items would get out of control, making it increasingly difficult for an average person to afford. --- Just something to think about.

 

[John Buxton]

Peter,

I dont live there but FHA just increased loan limits that may fall within your asking price. FHA isnt concerned about credit score like conventional lenders, just that the applicants have kept current on their bills the last 12 months. Depending on the underwriter, your potential buyers can file bankruptcy in the past year and still be approved for your home. The buyers may get a hit due to poor credit, but they can still qualify. I got a couple a loan after they filed BK last year but the reason was good (medical).

If I were you, I'd find a large FHA bank, or correspondent lender (not broker) to help you. Dont rely on real estate people, they are lazy. If you want to sell your house now, you are going to have to do the leg work. Personally I'd hang on to it and hope the market comes back in a couple years. If you have to move find a property manager to lease it out till the market improves, or you get a buyer.

If you need me to find you a lender, I'd be happy to try and help ya, but just dont hold me liable.

 

[The Magician]

The local Pizza places are worried about the price of flour. 400 % increase since last year. Food prices are go up too.

 

[hogjowl]

I like corn bread.

 

[R W]

Poor Mardy....he's getting nailed from both sides......corn and wheat!!!

 

[AnnaAgostino]

RW, you are BAAAD! (lol)


Yes, Pete, it's happening all over. We just raised our prices within the past several months because we just can't make ends meet at all.

Although I have to say that the Real Estate market was getting a bit ridiculous here. Homes were selling for far much more than they were really worth so I'm glad that it came down a bit. It was really getting ridiculous.

I guess we all have to tighten our belts, but that's a little difficult since most of us are spoiled and we want, we want, we want.

I think people sacrificed much more years ago and did without that's why many are in debt and are struggling today.

Anna

 

[steve g]

funny this topic comes up, last week I wrote a rant about wacko environmentalism, this was one of the topics