Long-term investors should look beyond stock market volatility
Market volatility can be unsettling, but history shows that prices have returned to less volatile patterns over time. That can be good news for long-term investors.
Livestock and dairy farmers across northern Europe are paying soaring prices for straw used in food and bedding for cattle, as hot, dry weather takes a toll on regional crops, reports Reuters.
The increased straw costs put further pressure on farmers already facing one of the toughest summers on record. Many farmers have had to supplement hay purchases because normal grazing grass has not grown.
“We are lacking an enormous amount of straw, both for feed and bedding. There are regions in which straw is already more expensive than grain,” said Peter Levsen Johannsen, CEO of the chamber of agriculture in Schleswig-Holstein.
Wheat straw prices have nearly tripled in certain markets, which could have a rippling effect on lost meat production revenue due to the grain scarcity. Analysts said rising input costs resulting from reduced grain crops could lead to higher store prices. However, retailers are more willing to raise prices on some products than others. (Source: Reuters)
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