Farmer Brown here…
No more discussion about the supply side eating costs, the price hikes for consumers are officially on. It should come as no surprise to regular TRB readers that corn costs are working their way into the prices of what corn feeds – chickens and hogs.
From the Wall Street Journal:
Much of the corn grown in the U.S. is used as animal feed. And “we’re using $6 corn to feed hogs right now,” up from about $4 last year, says Michael Swanson, an agricultural economist at Wells Fargo in Minneapolis. “Either the hog guy is going to go out of business or you’re going to pay more for pork.” So if you “want barbecue ribs,” he adds, “you’re going to have an extra $10 attached to it.”
It’s all happening. The UN’s monthly food price index is up six months straight according to the story. It is now at the highest level in 20 years. Moving away from food, other agricultural costs are helping to raise prices for consumers, most notably in cotton clothing.
This will continue, adjust your investments/consumption habits accordingly.