The food price trend will reverse soon.
Reader comment on: The Yellin McDonald's Dollar Menu
Submitted by Lyle (United States), Oct 21, 2014 16:52
With corn at about $3.50 a bushel right now beef prices reflect the calves born during the 2012 drought and with corn over 100% higher. The various meats and dairy have a cycle that takes time. 2-3 years in the case of beef. Pork will soon fall as they have the pig virus under control it will take 6 to 8 months for that to work thru. Now poultry will fall very soon. Futures prices show an 8% reduction in live cattle 15% in lean hogs over the next year(oct to oct). No futures exist in the poultry market. Over the next year the size of the dairy herd should also increase. This cyclic behavior along with the effect weather has on prices is why the fed and others focus on the non energy non food index.
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