Prices for 16 basic food items shoot up in third quarter

[Rickson]

http://www.latimes.com/business/la-f...C5925638.story

Supermarket prices for 16 basic food items surged to a record in the third quarter because of higher commodity costs and increased processing and transportation expenses, the American Farm Bureau Federation said Thursday.

The average cost of typical weekly consumer purchases rose 11% to $48.68 in the three months ended Sept. 30, from $44.03 a year earlier, the federation said. Costs rose 4.3% from the second quarter.


"Sustained high costs for processing, hauling and refrigerating food products are reverberating at the retail level," said Jim Sartwelle, an economist for the federation.

The share of the food dollar that went to farmers and ranchers fell to 19% in the quarter, the lowest in the quarterly survey's 20-year history and down from about 32% in 1980, the federation said.

Retail prices for flour, potatoes, cheddar cheese and apples showed the largest increases in the quarter. A 5-pound bag of flour cost $2.62, up 37% from a year earlier, while 5 pounds of potatoes rose 32% to $3.38. Prices for cheddar cheese and apples surged 21%.


Vegetable oil rose 17%, a dozen eggs jumped 13%, pork chops were up 6.8% and hamburger cost 5% more, the federation said.

Corn futures surged 70% on the Chicago Board of Trade during the quarter from a year earlier, wheat increased 11% and live cattle rose 8.2%.

Food-price inflation may run as high as 6% this year, the highest since 1980, the U.S. Department of Agriculture said.

A total of 74 volunteer shoppers in 32 states participated in the survey, conducted in August, the Farm Bureau Federation said.

I wonder what effect the 700B bailout will have on these prices...

[Gary Wright]

Originally Posted by Rickson

http://www.latimes.com/business/la-f...C5925638.story



I wonder what effect the 700B bailout will have on these prices...

So far, all of the commodities involved in producing food have tanked.

http://www.cbot.com

When there is no liquidity, nobody wants to pay a high price for anything but cash. Obviously, the bailout isn't creating the shortage of cash, which in turn, creates a slowdown and a perceived lower demand for commodities, but it doesn't seem to be doing anything to slow down the fall, either.

[Rickson]

Originally Posted by Gary Wright

So far, all of the commodities involved in producing food have tanked.

http://www.cbot.com

When there is no liquidity, nobody wants to pay a high price for anything but cash. Obviously, the bailout isn't creating the shortage of cash, which in turn, creates a slowdown and a perceived lower demand for commodities, but it doesn't seem to be doing anything to slow down the fall, either.

You know what the lag is...I know gas prices adjust fairly quickly...but how about my boxes of wheaties? When are they going to drop, or something like milk?

We're fortunate to produce or trade for the majority of what we eat...

[NoName]

Originally Posted by Rickson

We're fortunate to produce or trade for the majority of what we eat...

How do you get the rest? Shoplifting?

[Juan McCain]

Tortillas are still cheap, ese.

[Rickson]

Originally Posted by NoName

How do you get the rest? Shoplifting?

No, we do buy a few things...lol...

"Been caught stealing once...."

Great tune!