Hacker News Reader

Historically problems in fresh veg supply has translated into higher prices for both meat and grains as consumers switch their preferences.

The futures markets for grains and meats are both running lower right now. The pros think that demand is going down due to economic activity and the supply chain issues aren’t going to make a dent in that.

I have no position but the reading of the markets is that no one is worried about food yet.

View on HN

> The pros think that demand is going down due to economic activity

Does that make any sense? Do people eat fewer grains when economic activity goes down?

People aren't the only consumer of grains. You have biofuels, as well as livestock feed. Biofuels are likely having a bad time with the breakdown in OPEC. With livestock, people might eat a bit less meat, but I donno if that's really gonna move much. But directly to your point, grain alcohol products might drop a smidge with restaurants out of commission for months. Even if people only drink marginally less, they'll be paying way less for it and I imagine some of that margin cut trickles down the supply chain.

More darkly, there may be 1 percent fewer people around to eat bread, steak and drink vodka.

Meat takes a huge hit in economic downturns. Meat is what eats the grains sold in futures markets.

Reply on news.ycombinator.com