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SupermarketGuru.com Editor Phil Lempert on the rising price of corn and soybean and their potential impact on the price of other foods.
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This yet.
Food prices are still set to -- regardless.
The drought hammering the middle of the country is driving corn prices up 30% of the best month.
Soybeans hovering around record highs as well my next guest says when that stuff goes up just about everything else quickly follows.
So get ready to pay a big time for the supermarket the Lampard.
Is the supermarket guru how high do you think is -- Well I don't.
No free even know how high highest.
It's gonna go up keep in mind we've come over the past two years with increases now -- seeing even more increases and as you point out.
Corn affects just about everything whether it's ethanol and 40% of all corn goes for -- these days.
Whether it's livestock feed whether it's high fructose corn syrup it's an hour so this just about every says got a -- up.
Residual play here net soybeans is of like that.
That that pops up and a lot of stuff as well it does and also keep in mind in case of corn about.
50% of it is actually exported even more of that is exported when it comes to soybeans now the good news is that when we look at -- Fruits and vegetables they've had a great season so far.
Prices have actually come down with that so what I would suggest is may -- as beef and chicken prices are gonna go up because of the corn.
We need more vegetables and we're gonna get healthier -- god forbid.
All right so but in all seriousness what this is a phenomena you see lasting -- -- You -- -- during the break to government reports that show.
This is a climatic type of them right it's -- in -- absolutely in February.
-- USDA does their twenty year forecast and what they did is they predicted that beef and chicken in particular.
The next five to seven years was gonna go up.
That corn was gonna go up.
And they look at global weather conditions and if you look at the price of coffee for example the reason that that went up so like he was dreaming in Colombia for so long.
We really have a lot of climate change and even with the climate since it just.
That's sort lied to were sent me again be a -- for a variety can't be raining on the Brazilian.
Cars forever you know enemy and I -- I understand the weather play that very clearly.
But that would assume that it continues almost unabated on -- erupted for years.
Yes but we can do things about it we can have more hot house is for example.
This -- you know if you look at California a lot of tomatoes are hot -- so they're not affected by the weather we can control climate.
And we just need to do more of that.
So the climate and is real how we defend against it has got to get real -- absolutely we really have to have businesses investing more.
In technology is a relates to our crops so that we can actually make sure that we can feed not only the US population but globally -- -- -- -- about.
The general.
Food inflation we've already seen and I guess you're right you can pretty Preston -- this stuff it's gonna continue.
The Fed says we don't have inflation.
-- days shopping at the same -- is.
We're -- absolutely not year to date two point 7% higher prices on overall than it was last year.
Year to date five point 4%.
-- five point four for food before up five point 44 beef could look at all food two point 7% over last year.
Chicken 4% -- when they say an official inflation rate under 1%.
-- -- -- We've -- something well they're not looking at -- supermarkets and again maybe you know they're not getting through the same place we are.
But clearly the prices at the -- market are up.
And supermarkets are working very hard to control that.
Because if you take a look when the recession start.
What happened -- -- -- guarded shopping and other places like save a lot like dollar stores for a new rise they've been big winners in this in my view and a lot of people way to store brand right and in this store -- of these store brand cereals -- sort of do you see more of that happening as well no -- went to store brands than they were disappointed me -- back in two major brands that's where we see the innovation.
Happening so what some of them have smaller packages right smaller packages certainly if you look at ice cream for example Ben and Jerry's -- sixteen ounces.
You look at the Haagen -- which is the same -- package that's why fourteen ounces -- yeah but they did that in order and not have to reach the price people see through them down there -- -- -- -- just except that they except really.
While they don't see through -- even if you look at bottled water for example.
Next time -- in the -- market look at some of the gallon bottled waters well they're not a gallon.
They now do the same trick that wine bottles have with that huge Alaska governor -- director -- less at a -- water.
So no he's got to be smarter shopper through got to read the net wait we've got a re do you agree unions aren't words was all so -- thank you very much -- -- thank --
