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Friday, September 4, 2009

Commodities and Our Food

Friday, September 4, 2009

Many times people who trade commodities will overdo media hype about negative weather that may destroy crops or cause a low yield that year. Meaning there will be fewer crops available for sale and therefore supply and demand dictates prices to be higher. Therefore people buying these commodities that have an important need are willing to pay more so they are not caught short without. Finally the person who’s actually going to use the products in production (in the case of Agricultural products) ends up buying what they need.

Some of the speculators who bet on margin make an incredible about money in a very short time. And some loose so much money to they cry, jump out of buildings or may never recover. Others would say, it artificially elevates the price to a cost un relative to any sense of reality. And that the end price of the makers of Gray Pupon in France is higher than if they bought the mustard seed from the corporate farmer himself. McDonald's buys its potatoes from corporate farmers in Idaho not the commodities market; therefore it limits its exposure to price gouging that might have occurred by using the commodity exchange to get those potatoes. Starbucks is doing the same thing, but instead of having partnerships and coffee beans, they are all of in-house. Its Starbucks owns the partnerships they grew the coffee then they might have a conflict of interest for their stockholders. Because they would be dictating the price of the coffee at the partnerships been sold to Starbucks. If they paid a little more than normal for those coffee beans, so the coffee plantation can expand by better production facilities and upgrade then Starbucks funneled money to those partnerships, that should have either paid in dividends, shown as profits or retained earnings. By doing that their stock price would go up and shareholders would be better served short-term.

Food and Drink - What to Expect in Costa Rica
A traditionally mild, not over-spiced cuisine, the Costa Rican food has absorbed influences from the Caribbean, South America and Europe into its culinary cauldron. Many dishes are simple with the staples of rice and beans tending to form the basis of most rural cooking. Costa Rican’s are also heavily dependant on locally grown fresh produce, particularly members of the squash family including courgette (or zucchini), zapallo and chayote (known as the “Christophine” throughout the Caribbean). The most famous dish of Costa Rica has to be “Gallo Pinto” (literally translated as “spotted rooster”), a dish brought into the country by Nicaraguan immigrants. The dish consists of rice, coriander, onion and black or red beans and is often served for breakfast or lunch. “Casado” is a similar dish consisting of rice and beans, served with pork, steak or chicken and usually accompanied by a small portion of salad and fried plantains. This dish is customarily served as a dinner and is widely available throughout Costa Rica and can provide tourists with a hearty, low-cost meal.

The influence of nearby Mexico can also be seen in Costa Rican cooking – the use of corn tortillas and “gallos” (resembling a soft Mexican taco), are extremely popular. Locals stuff their “gallos” with a vast array of different fillings, usually a combination of diced meat, vegetables and spices. In terms of fish, Costa Rica has a plentiful supply of abundant fishing waters. With 212km of coast along the Caribbean Sea and a whopping 1,016km along its Pacific coast you would expect to find the country saturated with well-priced, extremely fresh fish. Unfortunately most of the fish is exported elsewhere so whilst fish is still readily available in Costa Rica and usually very fresh, the prices can be a little high, especially when compared to the island’s staples.

If you’re wondering what to wash it all down with then the drink Costa Rica is most famous for is indubitably coffee; the nations largest export alongside bananas. Costa Rican’s drink a lot of coffee; it tends to be strong and served with milk. Most of the best stuff tends to be exported so expect the quality to vary throughout Costa Rica from the sublime to the pretty awful. Don’t be surprised to find it served alongside your dinner as well. Other favourite local drinks are “Horcheta” (a cinnamon flavoured cornmeal drink), “Agua Dulce” (a sweetened water based drink usually served at breakfast) and the typical lunchtime drinks “refrescos”, which consist of liquidized fruits mixed with either milk or water.

Wine is not such a good option, locally produced stuff is a definite no-no and imported stuff tends to be pricey with the exception of wines coming from Chile or Argentina.


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