Wet harvest causes grain prices to rise 7.7%. Should we buy our Wheaties now?

Posted Nov 2nd 2009 6:00PM by Connie Madon
Filed under: International Markets, Products and Services, Consumer Experience, Market Matters, Commodities, Agriculture

We've had wet weather in the Midwest during the harvest season, resulting in higher grain prices.

The U.S. Department of Agriculture (USDA) issued a report on wholesale crop prices paid to farmers. Let's look at some prices:

Corn rose 29 cents per bushel to $3.54
Wheat jumped 8 cents per bushel to $4.56
Soybeans dropped 1 cent per bushel to $9.74
Wholesale milk prices jumped 7.1% in October to $1.19 per gallon. Milk prices, however are down 22% from last year.

While prices are up this season, they still are down from the record levels reached last year when we had worldwide food shortages. Keep in mind that there is a lag time between rising wholesale prices and prices paid by the consumer at the food store. Sooner or later we'll see some kind of price increase, or we'll get a smaller package for the same money (the latest trick being played on consumers.)

Wholesale meat prices fell slightly, but are down 12% from last year. Let's look at these numbers:

Hog prices fell less that 1 cent to $3.70 per pound.
Beef cattle prices fell 17 cents to $7.89 per pound.
Poultry prices fell 2 cents to 40 cents per pound.

Overall, then, we have higher grain and milk prices and slightly lower meat prices.

Have you seen these numbers reflected in the prices you are paying at the supermarket?

Tags: food, grain prices, GrainPrices, harvest, inthenews, meat

Print this

Reader Comments (Page 1 of 1)

11-03-2009 @ 8:23AM

Sam said...

What happen to the grain silos that where so full they were wondering where to put this years harvest? Once again the American public is paying the price for the intentional and purposefully late harvest. As of last month, the corn farmers had only harvested less than 20% of the annual crop in hopes of a rise in price. Normally, they would have had almost 30-40% harvested at this same point on the calander. They waited, bvut not because of weather because of low pricing. Now, they need to get their crops out of the fields before they loose them. No sympathy here except for the American consumer who once again pays they price.

11-03-2009 @ 8:58AM

lou said...

Well, I guess I will be going on a low carb diet this winter. I needed to lose weight anyway. Thanks wheat and corn farmers for a thinner, healthier me. I won't pay your prices at the store. Next year I will be sure to plant my garden again. Nothing like lean meat and home grown canned vegetables to aid me on my diet. Since soy is down I guess I will be drinking soy milk and skip the cow milk. I won't be robbed by the commodities market.

11-03-2009 @ 9:21AM

Troy Smith said...

You better go back & check your meat prices. According to the markets, live cattle are in the 85 to 90 CENTS per pouind range and hogs are less than that. However, if cattle are actually nearly $8 per pound, I am ready to go sell pickups in Nebraska for any Ford dealer right now!