Economics Discussion
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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. -
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. -
Sniper Angel:
Are you looking for a general discussion or a technical analysis?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. -
I think this is econs homework. for an econs tutor to answer.
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tankee:
The same argument can be used on rice as well. But rice price did not go up much. How? :lol: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.
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: -
toddles:
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 !
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30plus:
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. -
Sniper Angel:
Prices for wheat increased due to several factors :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.
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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