Food Prices Soar Thanks To "Big Corn"
From Thursday's IBD: Rising demand for greener energy began competing in earnest with the food supply in the last year or so. That sent per-bushel corn prices soaring to around $4 a bushel from a historical average closer to $2.
Those higher costs also trickled down to beef, milk, fruit and a host of other staples. May food prices rose 4.7% from a year earlier, according to the latest consumer price index. The cost of eating out rose only slightly less.
The Agriculture Department said consumer food prices will rise 3% to 4% this year, notably faster than last year's 2.3% gain.
Tighter world grain supplies on top of extra ethanol demand could send those numbers even higher.
8 Comments:
The text of the article states May food prices rose 4.7% but the graph shows a rise of 3.9%.
Am I reading this wrong?
The text of the article states May food prices rose 4.7% but the graph shows a rise of 3.9%.
I read it as: Food prices are up 4.7% May '06 to May '07; or they were up in May at an annual rate of 3.9% (Jan-Dec).
Either Jeff is correct, or the text is wrong! I didn't prepare these graphs, they are from the IBD, and there is the possibility that the text should have said 3.9% instead of 4.7%.
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I barbecue my corn using a gas grill. So sooner than later I guess I'd better be prepared to change my eating habits from corn to weeds and find myself a nice hot rock that I can saute them on so that I can save my money for taxes that allow mw to live so well.
What's really sad is ONLY deathsweep seemed to understand the situation...
The others were splitting hairs over a silly graph...
What's really sad is ONLY deathsweep seemed to understand the situation...
As a community college economics instructor I can assure you I am aware of the situation and ramifications (as is Prof. Perry). Mr. Wright asked a question, we responded with our understanding of the situation. That doesn't negate any other observations or intuitions we may have regarding agricultural markets. Sheesh......
"Mr. Wright asked a question, we responded with our understanding of the situation"...LOL!
O.K. now how about getting a grip on the real world...
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