Rising Corn Prices Will Soon Mean Fatter Meat Prices
By CHARLES WALLACE
The government may have reported a core inflation rate for September that barely budged from August, but there’s still bad news for consumers at the grocery store: A spike in corn prices will probably lead to higher meat prices soon.
The price of corn has shot up 8% during the week of Oct. 11 alone, bringing the total rise to close to 50% in the last three months. The sharp increase came after the Department of Agriculture issued a forecast for corn production that was 4% lower than the forecast it had issued in September. That would put the crop at 12.7 billion bushels, about 3% less than last year’s crop.
Most of the corn is used for animal feed, so it’s an important component of beef and pork prices (and, of course, ethanol).
Food Costs Are Creeping Higher