Global corn demand set to push US food prices even higher
Glad you don't live in the Middle East where food riots have turned into full scale government protest? Don't cheer too loud. Food prices will be rising in the US as corn and other commodities have doubled.
Global demand and Helicopter Ben's full scale devaluation of the US dollar has pushed US corn supplies to their lowest point in 15 years. Corn futures have almost doubled in the last six months. Corn affects most food prices. It's used as feed for cattle, pigs chickens and turkeys. Also, it is the main ingredient in many cereals, corn chips and soda pop. Via CNBC:
|Corn ETF source google|
Shoppers could see higher grocery bills as early as three months from now, though most of the impact won't be felt for another six months, said Scott Irwin, an agricultural economics professor at the University of Illinois.
Chicken prices are among the first to rise because the bird's life span is so short that higher feed costs get factored in quickly, he said. Price hikes for hogs take about a year and cattle two years. Prices on packaged foods take six or seven months to rise.