Showing posts with label Supply and Demand. Show all posts
Showing posts with label Supply and Demand. Show all posts

Friday, December 21, 2012

Milk Prices Could Double as Farm Bill Stalls - NYTimes.com

Milk Prices Could Double as Farm Bill Stalls - NYTimes.com:


EXCERPTS:

WASHINGTON — Forget the fiscal crisis and the automatic budget cuts. Come Jan. 1, there is a threat that milk prices could rise to $6 to $8 a gallon if Congress does not pass a newfarm bill that amends farm policy dating back to the Truman presidency.

Lost in the political standoff between the Obama administration and Congressional Republicans over the budget is a virtually forgotten impasse over a farm bill that covers billions of dollars in agriculture programs. Without last-minute Congressional action, the government would have to follow an antiquated 1949 farm law that would force Washington to buy milk at wildly inflated prices, creating higher prices in the dairy case. Milk now costs an average of $3.65 a gallon.
Higher prices would be based on what dairy farm production costs were in 1949, when milk production was almost all done by hand. Because of adjustments for inflation and other technical formulas, the government would be forced by law to buy milk at roughly twice the current market prices to maintain a stable milk market.
But the market would be anything but stable. Farmers, at first, would experience a financial windfall as they rushed to sell dairy products to the government at higher prices than those they would get on the commercial market. Then the prices customers pay at the supermarket would surge as shortages developed and fewer gallons of milk were available for consumers and for manufacturers of products like cheese and butter.
***
“But it would be short-term euphoria followed by a long hangover that would be difficult for us to recover from,” said Mr. Norton, who is president of the New York Farm Bureau. “I don’t think customers and food processors are going to pay double what they are paying now for dairy products.”
The Senate passed a farm bill in July. A House version of the bill made it out of committee, but House leaders have yet to bring its version to the floor.
Under the current program, the government sets a minimum price to cover dairy farmers’ production costs. If the market price drops below that, the government buys dairy products from farmers to buoy prices and increase demand. Since milk prices have remained above that minimum price in recent years, dairy farmers usually do better by selling their products commercially rather than to the government.
But if 1949 rules go into effect, the government would be required to buy dairy products at around $40 per hundredweight — roughly twice the current market price — to drive up the price of milk to cover dairy producers’ cost.
It would be bad for consumer demand in the long run,” said Chris Galen, a spokesman for the National Milk Producers Federation, which represents more than 32,000 dairy farmers.
Mr. Galen and others in the dairy industry said reverting to 1949 policies could probably force the makers of butter, cheese, yogurt and other dairy products to look for cheaper alternatives, like imported milk from countries like New Zealand.
***
In a conference call with reporters on Thursday, Tom Vilsack, the agriculture secretary, said the department was exploring all its options to deal with the possibility of the 1949 law going into effect.
Among the options: the agriculture secretary could drag his heels on the milk purchases until Congress passes a new farm bill or an extension of the 2008 one that expired in September, said Vincent Smith, a professor of agriculture at Montana State University in Bozeman.
This is a totally antiquated law that has nothing to do with farming conditions today,” Professor Smith said. “It was put as a poison pill to get Congress to pass a farm bill by scaring lawmakers with the prospect of higher support prices for milk and other agriculture products. Letting it go into effect for even a few months would be particularly disastrous for consumers and food processors. “

Wednesday, December 19, 2012

Should U.S. natural gas be exported?

Let America’s Gas Industry Boom - NYPOST.com:

EXCERPTS:

"In recent years, the nation has seen astonishing technological innovation in the natural-gas sector. Companies have discovered vast, gas-rich shale deposits under US soil. And they’ve developed new, high-tech means of extraction. The estimated reserves of recoverable domestic gas are now over 2.2 trillion cubic feet.

"The expansion in supply has already brought a dramatic drop in natural-gas prices, now at a 10-year low. Other countries, mostly in Asia, are eager to buy some of America’s low-cost gas. So 17 US energy companies have applied to export gas. And two proposals for new gas-export terminals — at Coos Bay and the Port of Astoria, both in Oregon — now await federal approval.

***

"The argument against natural-gas exports is also economically backward.A nation prospers through international trade precisely by exporting those goods and services that it can produce at relatively low cost.

"Indeed, the Energy Department report found that gas exports benefit the economy despite higher domestic prices — in part because they also mean a corresponding fall in the prices that Americans pay for other goods and services that we import. That is, lucrative exports allow our nation to import more of those goods and services that can be produced at home only at relatively high costs.

Friday, November 2, 2012

Price Gouging Saves Lives in a Hurricane - David M. Brown - Mises Daily

Price Gouging Saves Lives in a Hurricane - David M. Brown - Mises Daily

EXCERPT:

"Prices are how scarce goods get allocated in markets in accordance with actual conditions. When demand increases, prices go up, all other things being equal. It's not immoral. If orange groves are frozen over (or devastated by Hurricane Charley), leading to fewer oranges going to market, the price of oranges on the market is going to go up as a result of the lower supply. And if demand for a good suddenly lapses or supply of that good suddenly expands, prices will go down. Should lower prices be illegal too?"

Monday, August 27, 2012

Desperate Drivers Pay The Price At NMB Gas Station « CBS Miami

Desperate Drivers Pay The Price At NMB Gas Station « CBS Miami



MIAMI (CBS4) — Some South Florida drivers double checked their gas bills as they pulled away from the pumps ahead of Tropical Storm Isaac and wondered why it cost so much to fill up.
It’s no surprise now to learn the State of Florida could be very busy with alleged price-gouging cases around South Florida.
Cory Davis thinks the $4.49 a gallon price tag of regular unleaded at his local North Miami Beach gas station gouges local consumers.
He thinks the price hike came as desperate drivers were looking to fill up as Tropical Storm Isaac threatened South Florida.
“They‘re taking advantage of us man, $4.49, the gas prices are ridiculous. Come on man,” complained Davis.
CBS4 found other gas stations in the area selling unleaded regular from about $3.79 to $3.89 a gallon. The $4.49 price tag at the station Cory Davis visited is about sixty-cents more a gallon than other stations in the area.
Under the state’s price gouging laws, it’s illegal to raise prices on critical emergency supplies like gas, but only after a state of emergency is declared.
Formal complaints can be filed with The State Division of Consumer Services at 800-HELPFL or  800-435-7352. 
Attorney General Pam Bondi also activated the Price Gouging Hotline on Saturday.
She urged Floridians to report any suspected price gouging at 1-866-9-NO-SCAM (1-866-966-7226).
The cashier at the station charging $4.49 said he doesn’t know when prices were raised and told CBS4′s Al Sunshine that the manager was not working.
If any business is found to have violated state or local  price-gouging laws, they can face up to a $10,000 fine.

Wednesday, August 15, 2012

To protect ethanol, Obama seeks to inflate meat prices | WashingtonExaminer.com

Examiner Editorial: To protect ethanol, Obama seeks to inflate meat prices | WashingtonExaminer.com

EXCERPTS:

"Campaigning in Missouri Valley, Iowa, yesterday, President Obama announced yet another government spending program -- this time designed to inflate meat prices in Midwest swing states. "Today the Department of Agriculture announced that it will buy up to $100 million worth of pork products, $50 million worth of chicken, and $20 million worth of lamb and farm-raised catfish," Obama explained to reporters in front of a drought-stricken cornfield.

"Prices are low, farmers and ranchers need help, so it makes sense," Obama explained. "It makes sense for farmers who get to sell more of their product, and it makes sense for taxpayers who will save money because we're getting food we would have bought anyway at a better price."

QUESTIONS:

1.  Who will benefit from the government purchasing more agricultural products (increasing the demand)?
2. Who will be hurt (bear the cost) by this plan?

Saturday, June 2, 2012

Hospitals fight drug scarcity, fear patients harmed | Reuters

Hospitals fight drug scarcity, fear patients harmed | Reuters
 
WASHINGTON (Reuters) - At the Henry Ford Hospital in Detroit, pharmacists are using old-fashioned paper spreadsheets to track their stock of drugs in short supply - a task that takes several hours each day.
Most of the hospital's medicines - with usage estimated at $100 million a year - are tracked by automated systems that allow for quick reorders when the supply runs low. But these automated systems, designed to help the hospital avoid purchases and storage costs of unused pills and vials, do not work if it is uncertain when the next batch of drugs will come in.

A few hundred medicines make the list of drugs in short supply: anesthetics, drugs for nausea and nutrition, infection treatments and diarrhea pills. A separate list has scarce cancer drugs for leukemia or breast cancer.
"Now we have to go through the pharmacy and count those drugs on a daily basis ... to make sure we don't run out," said Ed Szandzik, director of pharmacy services at the hospital for over a decade.
The growing scarcity of sterile, injectable drugs is one of the biggest issues confronting hospitals across the country, and will be a key issue at the annual American Society of Clinical Oncology meeting in Chicago this weekend.
Health officials blame the shortages on industry consolidation that has left only a handful of generic manufacturers of these drugs, even as the number of drugs going off patent is growing. Some drugmakers have been plagued by manufacturing problems that have shut down multiple plants or production lines, while others have stopped producing a treatment when profit margins erode too far.
Some medicines have been periodically short in the past, doctors and pharmacists say, but the number of drug shortages has escalated in recent years, jumping from 56 in 2006 to 250 last year, according to U.S. Food and Drug Administration figures.
Generic drugmakers like U.S.-based Hospira Inc and Teva Pharmaceutical Industries, an Israeli company, say they are building new facilities to prevent future shortages.
But in the meantime, pharmacies around the country are counting pills, begging neighboring hospitals for extra supplies and scouring the Internet for news of additional supply disruptions.
When rumors surface of an impending shortage, some pharmacies rush to buy up more than they need, likely leading to bigger shortages, analysts and other pharmacists said.
All of this requires regular attention from hospitals to manage the crisis. At Children's National Medical Center in Washington, D.C., pharmacists and administrators meet weekly to discuss just how dire the situation is for different medicines.
"Every Wednesday before we have that (meeting), I have a bit of anxiety," said Ursula Tachie-Menson, acting chief of the hospital's pharmacy division. She spends about 30 percent of her time each week addressing shortage-related problems.
"Out of all the (21) years I have been practicing, these drug shortages have been one of the biggest challenges," she said.
EARLY WARNING SYSTEM
The FDA has been acting under an October executive order from President Barack Obama to fill in the gaps. It has had success getting an early warning from drug companies when they foresee a new shortage, allowing the agency to persuade other manufacturers to increase their production or look overseas to guarantee supply.
"I can tell you that there's not a single company I'm aware of out there that isn't talking to the FDA," said David Gaugh, head of regulatory sciences at the Generic Pharmaceutical Association, referring to the trade group's members.
The FDA said early notification has helped prevent shortages of 128 drugs in six months. It also estimates the rate of new shortages is slowing, with half the number of new scarce drugs this year compared with 2011.
There are currently about 130 drugs in short supply listed on the FDA's website.
But surveys and anecdotes keep piling up, showing doctors' efforts to find scarce drugs have not become easier. This month, a website for U.S. oncologists, MDLinx, surveyed 200 doctors and found more than 90 percent of them have experienced shortages of key cancer drugs.
CANCER, ANESTHESIA AND NUTRITION
A clinical nutrition group, the American Society for Parenteral and Enteral Nutrition (ASPEN), found that 70 percent of its 800 members who responded to an online survey, said they had seen shortages of adult injectable multi-vitamins, used for basic nutrition for patients with intestinal issues. ASPEN members responding to the survey included doctors, nurses and pharmacists.
More than a quarter were not giving their patients multi-vitamins because of the shortages, placing them at risk of severe vitamin deficiencies that can lead to issues like anemia, due to a lack of folate, or scurvy, which happens when people do not get vitamin C.
In extreme cases, a deficiency of a type of B vitamin called thiamine can lead to cardiac arrest or death.
"This is an act of daily living for people now," said Jay Mirtallo, president of the group. "How that can be acceptable, I don't understand."
When a drug is not available, doctors have to seek alternatives, which may not work as well or cost more money. Others have to ration limited supplies of a life-saving treatment to only those who need it most.
Dr. Steven Allen, a specialist in blood cancers at North Shore University Hospital in New York, recently treated a young woman who had suffered several relapses of a life-threatening cancer known as acute lymphoblastic leukemia.
Allen found a combination that involved thiotepa, an older drug his patient had not tried and could tolerate.
"When I ordered it, I was informed that there was none available, and it couldn't be obtained," said Allen, also chair of the committee on practice at the American Society of Hematology. He substituted a similar drug, but one that the woman had already taken. "We tried to make up a dose that was equivalent to thiotepa and hoped for the best. ... But I think it may have compromised her care."
On May 14, the FDA announced it would allow temporary imports of thiotepa made by Italian company Adienne Pharma & Biotech, to relieve manufacturing delays at Bedford, Ohio-based Bedford Laboratories, a unit of the private German company Boehringer Ingelheim that is the only approved manufacturer for the United States. Bedford said in April it did not know when further shipments would be available once its supplies ran out.
Imports have not helped anesthesiologists like Dr. Jason Soch, who hears about a new shortage nearly every week during his rotations at several surgical centers in Philadelphia. These are often "workhorse" drugs such as fentanyl, midazolam and propofol, used every day during surgery.
"It seems like as soon as one drug is no longer in shortage, we get an email from the hospital pharmacist that they're on their last box of another," he said.
Every disruption forces doctors to change dosing, or give new drug combinations they may not be as familiar with.
"I didn't envision this when I went to anesthesia," Soch said. "I'd figured we'd have whatever we needed."
SCRAMBLING FOR A FIX
The problem has inspired some creative solutions, like a drug shortages mobile application called RxShortages that allows medical and pharmacy staff to track new drug shortages posted on websites, including the FDA's. Mick Schroeder, a pharmacy resident who created the app, said it has been downloaded about 25,000 times.
Brooke Bernhardt, an oncology pharmacist at Texas Children's Hospital, said she checks RxShortages at least once a day.
"Unfortunately, at any point we expect a drug to go on back order," she said.
Szandzik, the pharmacy director at Henry Ford Hospital in Detroit, admits he would buy a larger quantity of drugs than usual if it became available.
"If I have to get one or two months' supply, I'll buy it, because our patients need it," he said. "Hoarding is in the eye of the beholder."
Some distributors and manufacturers prevent hoarding by allocating drugs based on historical demand. Other pharmacists say it is natural to want to buy more to ensure supply.
"Why did it ever have to get to this point in the first place?" Szandzik asked. "It takes a lot of hours, a lot of labor, a lot of luck to make sure our patients are safe. ... And I don't see it getting better for a while."
(Reporting by Anna Yukhananov; Editing by Michele Gershberg, Jackie Frank and Jan Paschal)

QUESTIONS:

1. Why you do you think there is a shortage of these drugs?
2. Did the article say anything about what has happened to the price of these drugs?
3. Based on what the article says, and doesn't say, who or what is being relied on to direct how resources in the drug sector of the economy will be used, government planners or market forces?
4. What would happen if producers of these drugs were free to charge whatever prices they wanted?

Thursday, February 23, 2012

Price Shock: Watch Cost of Gas Jump 10 Cents During ABC’s ‘World News’ Broadcast

Price Shock: Watch Cost of Gas Jump 10 Cents During ABC’s ‘World News’ Broadcast:
video platformvideo managementvideo solutionsvideo player

The headlines of major newspapers and TV networks this week have been dominated by rising gas prices. Drivers across the country have shared their stories on the cost - with many already paying more than $4 a gallon at the pump. There have even been reports of gas...

Monday, December 12, 2011

Norway butter shortage threatens Christmas treats - Times LIVE

Norway butter shortage threatens Christmas treats - Times LIVE

EXCERPT:

"The shortfall, expected to last into January, amounts to between 500 and 1,000 tonnes, said Tine, Norway's main dairy company, while online sellers have offered 500-gramme packs for up to 350 euros ($465).

The dire shortage poses a serious challenge for Norwegians who are trying to finish their traditional Christmas baking -- a task which usually requires them to make at least seven different kinds of biscuits.

The shortfall has been blamed on a rainy summer that cut into feed production and therefore dairy output, but also the ballooning popularity of a low-carbohydrate, fat-rich diet that has sent demand for butter soaring.

"Compared to 2010, demand has grown by as much as 30 percent," Tine spokesman Lars Galtung told AFP.

Last Friday, customs officers stopped a Russian at the Norwegian-Swedish border and seized 90 kilos (198 pounds) of butter stashed in his car.

Friday, September 2, 2011

One parking space: $100,000 - WSJ.com

In Crowded Downtowns, Parking Costs a Premium - WSJ.com

EXCERPTS:

"Helen and Bob Alkon paid $1.3 million for their condominium in downtown Boston two years ago. And while some apartments in the building have slipped in value since then, one of the Alkons' investments has paid off: The parking spot they purchased for $100,000 today sells for $125,000.

Thursday, August 18, 2011

"I'll bring back $2 gas" - Aug. 18, 2011

EXCERPTS:

"President Michele Bachmann has a promise: $2 gas. 'Under President Bachmann you will see gasoline come down below $2 a gallon again,' Bachmann told a crowd Tuesday in South Carolina. 'That will happen.'

"Sure, politicians promise all kinds of things on the campaign trail. But Bachmann, a leading contender for the 2012 Republican nomination, is wading into truly tricky territory.

***

"It's certainly true that prices -- now about $3.50 a gallon on average -- have risen since President Obama took office. "The day that the president became president gasoline was $1.79 a gallon," Bachmann said. "Look what it is today."

"Of course, that's not the full story. When Obama took office, the country was mired in a terrible economic contraction. "That was in the 4th inning of the greatest recession of our lifetime," said Tom Kloza, chief oil analyst at the Oil Price Information Service. During recessions, demand for gasoline plummets as trucks pull off the road, companies cut back on travel and laid off workers drive fewer miles.

Saturday, July 30, 2011

Pilgrim's Pride Swings to Loss, Closing Plant - WSJ.com

EXCERPTS:

"Pilgrim's Pride Corp. swung to a quarterly loss and set plans to shut a Texas chicken-processing plant, highlighting the problems facing U.S. food producers as they wrestle with high grain costs and a tough pricing environment.

The second-largest U.S. poultry producer by revenue lost $128 million in the second quarter and will shutter a plant in Dallas with 1,000 staff in an effort to curb the glut of chicken that has depressed prices.

"Our industry's business model is not sustainable at these [price] levels," said Pilgrim's Pride Chief Executive Bill Lovette on a conference call. The company will have 29 bird-processing plants after Dallas closes, and eight of those facilities are already idle.

The chicken industry has suffered compared with pork and beef producers, which have been lifted by strong exports, though the entire meat-producing sector has been stung by soaring feed costs. Chicken producers have had the toughest time passing on price increases to retailers and consumers.

Pilgrim's, which has 42,000 employees, was the largest casualty of a similar spike in animal-feed prices in 2008 that combined with wrong-way bets on derivatives contracts that left the company nursing a $1 billion full-year loss and pushed it into bankruptcy protection alongside a host of smaller producers

Friday, July 1, 2011

Price Gouging Laws Hurt Storm Victims: Newsroom: The Independent Institute

EXCERPT:

"How many people see natural disasters like the tornadoes in Tuscaloosa, Alabama, and Joplin, Missouri, and say, “we should be working to impede the recovery and make life harder for storm victims”? Probably no one. How many people see prices rise after natural disasters like the tornadoes in Tuscaloosa, Alabama, and Joplin, Missouri, and say, “we should prosecute ‘price gougers’!”? Probably a lot. And yet prosecuting price gougers makes life harder for storm victims."

Tuesday, May 24, 2011

As Natural Gas Prices Fall, the Search Turns to Oil - WSJ.com

EXCERPTS:

"The natural-gas industry touts its fuel as an attractive alternative to coal and oil, saying it's comparably clean, domestically abundant and cheap.

But that final selling point might not last if the industry succeeds in stirring demand even as it cuts back on drilling.

In the past few years, a glut of natural gas has driven down the price to half the 2008 average—a level where it costs a U.S. consumer $2.75 a day to meet a home's natural-gas needs, according to the American Gas Association. That's good news for consumers, but a recent study by consultancy Wood Mackenzie found that 40% of U.S. natural gas produced last year didn't meet break-even prices for producers.

Natural gas now costs roughly the same as its energy equivalent in coal and a quarter of its energy equivalent in oil. The gas industry is making some headway in capitalizing on its relative cheapness: President Barack Obama has endorsed incentives for trucks powered by natural gas, and power companies are considering replacing coal-fired plants with gas-burning ones.

Those steps would increase natural-gas consumption just as production growth is likely to slow. That's because companies now can make more money drilling for oil, whose price has soared last year and in recent months on unrest in Northern Africa and the Middle East.

Proven U.S. natural gas reserves hold about twice the amount of energy as could be generated by domestic oil reserves, according to a 2009 estimate by the U.S. Energy Information Administration. The nonprofit Potential Gas Committee last month increased its estimate of natural gas available for U.S. production to 2.1 trillion cubic feet. That amount represents a 42% increase in the past four years, and is enough gas to meet domestic needs for 100 years at current consumption rates.

Companies use the same type of rig to drill for oil or gas, and allocate equipment according to which fuel is more profitable to produce. The number of land rigs in the U.S. drilling for natural gas is down 8% from a year ago, while oilrigs are up 81%, according to oilfield-service company Baker Hughes, Inc. In April, companies reported more rigs drilling for oil than gas for the first time since 1995, underscoring how oil's profit margins have fattened.

"All of our drilling ideas compete with each other," Larry Nichols, chairman of Devon Energy Corp., said recently. This year, Devon, a major gas producer, is spending 90% of its nearly $5 billion budget on oil drilling. "You look at the ones where you can make money at current prices, and that's where the money gets allocated," he said.

Tuesday, May 10, 2011

Prices of Used Cars Rising Sharply - WSJ.com

EXCERPTS:

"Prices for used cars hit a record high in April and are poised to go even higher as production cutbacks during the recession and the more recent Japanese earthquake has made used vehicles a hot commodity as dealers dive into the depleted pool for cars to fill their lots.

The one-two punch has added between $1,500 to $3,000 to the price of some used cars just in the last six months, meaning more money for trade-ins and a tougher time for shoppers looking for a deal.

"The price of used cars is just crazy right now," said Adam Lee, chairman of Maine dealer Lee Auto Malls. His dealership is paying hefty sums for cars it normally might not purchase to have a full inventory. "It can be a piece of junk—cars we used to pay $2,000 or $2,500 for, we are now paying $5,200 to $5,500," Mr. Lee said.

Dealers say the prices of used vehicles will continue to soar as inventories of lower-priced and economy cars shrink. Japanese auto makers Toyota Motor Corp. and Honda Motor Co. have warned their production could be limited through year-end. U.S. dealers say they expect to exhaust existing inventories and face severe shortages of new Japanese cars by July.

Thursday, March 31, 2011

Chinese Rush to Buy Soap Ahead of Price Increases - WSJ.com

EXCERPTS:

"BEIJING—Chinese shoppers are clearing supermarket shelves of soap, laundry detergent and shampoo after media reports warned of sharp price increases, the latest signal of public alarm over rising inflation despite government attempts to bring it under control.

State media began reporting late last week that the four consumer-goods companies that dominate the market for detergents—Unilever PLC, Procter & Gamble Co., Guangzhou Liby Enterprise Group and Nice Group—are expected to increase prices soon by 5% to 15%.

That news spurred consumers across the country to flock to supermarkets to fill their shopping carts. At a Tesco PLC grocery store in Shanghai, a service manager said customer numbers doubled over the weekend, and the shoppers stripped shelves bare of laundry detergent.

***
China's consumer-price index rose 4.9% in February from a year earlier, unchanged from January's rate and higher than Beijing's target of 4% for the year. Chinese consumers here have been hit hard by rising food prices, which increased 11% in February from a year earlier. Prices of everything from eggs to garlic have surged.

***
Many consumers feel their only course of action is to stock up on goods that won't spoil quickly.
"Shampoo is already way too expensive, and I can't bear any further price increases," Ms. Wang said.
With five bags of Tide laundry detergent in her grocery cart, Ramona Yan, a 24-year-old website editor, said buying in bulk now would save her money in the coming months."

China Fuels Waste-Paper Boom - WSJ.com

EXCERPTS:

"CARSON, Calif.—Unemployed and short on cash, Jerry Leonhardt ... regularly sells worn cardboard to the recycling center, which bales it, packs it into containers, and trucks it 10 minutes to the Port of Long Beach, where it is loaded on ships bound for China. "I make out pretty decent," said Mr. Leonhardt, who fetches about $85 per truckload.

Exports of waste paper, the term given to the market for second-hand boxes and other scrap paper, are taking off. The U.S. has long shipped its discarded paper—cardboard, newspapers, catalogues, phone books and other scraps—to emerging markets like China, which doesn't yet have enough imports, hearty trees, or a strong enough recycling habit to generate ample raw materials to make boxes for its own booming export market.

... China needs the U.S.'s old boxes in order to make new boxes to ship stuff back to the U.S. China is also scrambling for American waste paper to box consumer goods sold to its own growing middle class, according to analysts, who say it is far cheaper for China to make boxes locally from waste paper rather than import new boxes directly.

"They simply don't have enough boxes," said Bill Moore, a paper industry consultant in Atlanta.

The U.S., meanwhile, has plenty. With more people shopping online, U.S. houses are inundated with boxes, which now represent 15% of the residential waste stream, up from 5% in 1995, according to Mr. Moore.

After falling sharply in 2009, U.S. export prices for old cardboard boxes—the bellwether for the scrap paper market—have been steadily climbing and are passing pre-recession prices. Chinese paper mills are paying $228 for a baled ton of old corrugated containers—industry jargon for used cardboard boxes—leaving ports around Los Angeles, up 5% from March 2010, and well past the going rate of $160 per ton in March 2007, according to Official Board Markets, a weekly report for the packaging and paper recycling industry.

***
In Carson, Calif., individual and commercial scrap collectors looking to sell their hauls start arriving at the three-acre Corridor Recycling yard at 6 a.m. and pull in all day, backing up trucks to huge mounds of loose cardboard and unloading them.

One regular, José Jimenez Leyva, 58, who had just dropped off a load, said local stores know him and save their boxes for him. He saves the stores the trouble of having to go to the landfill, and he earns about $90 dollars a day. "This is where I get my money for rent and bills," he said.

Mr. Leonhardt, who arrived in his white pickup loaded with boxes, said he was laid off from a shoe manufacturing company in 2009, and that his unemployment checks ran out in December. He heard about box collecting from a neighbor, who mentioned that prices were going up. "I'd like to earn halfway decent wages again, but for now, this is a help," he said.

Saturday, March 12, 2011

Quake in Japan Rattles U.S. Agricultural Markets - WSJ.com

EXCERPTS:

"Japan's earthquake and tsunami roiled commodities from oil to hogs to lumber.

Crude futures tumbled as the market assessed the damage. Fires broke out at two Japanese refineries while others closed down automatically when the earthquake hit. The shutdown refineries had a combined oil-processing capacity of 1.2 million barrels a day, roughly a quarter of Japan's total refining capacity.

Light, sweet crude for April delivery fell as low as $99.01 a barrel early in the session before recovering to settle down $1.54, or 1.5%, at $101.16 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures fell $1.59, or 1.4%, to settle at $113.84 a barrel.

Corn and lean hog futures saw some of the sharpest declines on fears the disaster would slow demand from a key buyer. Further selling came from traders looking to just exit commodities markets because of the overall uncertainty that follows a natural disaster.

Saturday, November 27, 2010

Black Friday: Police called after customers rush door at Toys R Us near Appleton | postcrescent.com | Appleton Post Crescent

EXCERPTS:

"Black Friday started with a black mark this year. The line of several thousand waiting customers wrapped entirely around the Toys R Us building at 4411 W. Wisconsin Ave. Thursday night. Moments before the store opened at 10 p.m., the line of those who’d just arrived and line of those who’d waited many hours overlapped.

When the doors opened, everyone rushed the door. The store’s staff quickly became overwhelmed, locked the door and called police for assistance.

A staffer repeatedly yelled, “back up” to those standing around the door. Customers who’d been waiting hours chanted “end of line” to those who’d just arrived.

Cpl. Jeff Oberg of the Grand Chute police arrived on scene and suggested the store create a barrier to control the line. Ten purple Babies R Us shopping carts were turned upside down in a row to thwart line-jumpers. Staffers reopened the doors and customers were let in 50 at a time without further incident.

“It got rough for a little bit,” said store manager Chad Wojcik around 10:20 p.m. “We’ve got it in hand now. I’ll do carts again next year.”

A brutal wind whipped temperatures below zero most of the night, testing the temper of anyone who braved standing outside Fox Cities stores waiting for bargains and doorbuster deals.

Best Buy’s traditional line of tents and huddled, waiting customers appeared considerably shorter than the length of last year’s line.

Most shoppers, however, came prepared for the cold and kept their good spirits.

Father and son Ed and Tanner Van Asten of Grand Chute arrived about 11 a.m. Thanksgiving Day to be first in line at Best Buy in Grand Chute.

“We’re all crazy,” said Ed Van Asten on those who do this grueling Black Friday ritual. “I came for my son who needed a laptop. I’ll do anything for my kids.”

His recommendation for anyone wanting to do this in the future: “Get here before noon, dress in layers and no tennis shoes.”

And forget about Thanksgiving dinner.

“Our Thanksgiving is Sunday this year,” he said.

“My bottle of water froze in the first two hours,” said Angela Krause of Sherwood, who waited in line for five hours at Toys R Us. “I have hand warmers, blankets and a sleeping bag, so I don’t notice the cold.

“It’s worth it,” she said of what she endured to get bargain priced Lego and other toys for her child.

Another veteran Black Friday shopper, Amber Kirk of Menasha, had her own formula for staying warm.

“You need long underwear top and bottom, thick socks, a blanket, lots of layers, coffee and sugar. We have a bowl of candy in the car,” she said.

Her friend Jen Fischer of Menasha, a Black Friday first-timer, was so completely wrapped in a blanket, hat and scarves that just her eyes showed, giving her the appearance of wearing a middle eastern burqa.

“I love it,” she said of her Black Friday experience. “I thought I wouldn’t. I thought I’d be cranky, but I’m not.”

Shoppers snapped up lots of 50 to 80 percent off deals at the Fox River Mall, which had a handful of stores participating in its first midnight opening. It appeared that most customers at that time were under age 30.

“The stores that are open are very busy,” observed John Burgland, mall manager, around 1 a.m.

“There’s a special adrenaline high being here at midnight,” said shopper Lisa Van Dyke of Neenah.

Wednesday, November 24, 2010

Tennis in Grand Central Terminal - WSJ.com

EXCERPTS:

"Only in Manhattan, where indoor tennis courts are rarer than personal garages, would anyone sign up a year in advance for an hour of tennis. And only on this space-strapped island would they pay as much as $210 an hour for the privilege.

Tennis players with thick wallets and ample foresight have already begun reserving hours at the new tennis facility that's being built in Grand Central Terminal in a space that used to house a CBS recording studio where "What's My Line?" and Edward R. Murrow's "See It Now" were filmed.

The price—depending on the time of day, between $100 and $210 an hour—will likely be the highest in the city for an indoor court, according to Anthony Scolnick who is leasing it from Metro-North Railroad. He predicts hedge fund executives, real estate professionals and others will be willing to pay that price when the Vanderbilt Tennis Club opens in September.

***

Indoor tennis in space-crunched Manhattan has never been for the middle class.

Aside from a seasonal tennis bubble a Parks Department concessionaire erects under the Queensboro Bridge, there are no public indoor courts on the island and the private ones are pricey. The Millennium UN Plaza Hotel, for example charges $110 to $165 per hour for the court there. The same amount of time costs $115 an hour for non-members at the Manhattan Plaza Racquet Club.

***
The bidding was won by Mr. Scolnick, the owner of Yorkville Tennis Club and Sutton East Tennis, both on the Upper East Side. He is a former athletic director at Hunter College. He will pay a starting rent of $225,000 a year to Metro-North.

QUESTIONS:  

1.