According to BLS data, food inflation in 2020 was 3.4 percent over 2019. The general inflation rate measured by the consumer price index was 1.2 percent. Food inflation often runs ahead of the overall CPI and is more volatile than overall inflation, which is why the Federal Reserve doesn’t factor it in to interest rate decisions. However, based on commodity prices and economic recovery in 2021, we could be looking at another year of higher food inflation. There were a few interesting points in the BLS data. First, the food staples rose the most with COVID panic buying and supply disruptions impacting price. Pork, beef, chicken, eggs, and milk were all above the overall food inflation rate.
Interestingly, cheddar cheese was...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
