Wednesday, February 13, 2008

Grain Prices Don't Seem to be Influencing Consumers Yet

The record high prices for commodities don't seem to be effecting consumer shopping habits at this point.

So far, the balance appears to be holding, a University of Illinois Extension grain-marketing specialist said Tuesday. “It’s become a worldwide situation. We haven’t seen any cutback in consumption, and our exports remain strong,” said Darrel Good, referring to a just-released forecast from the U.S. Department of Agriculture of continued growth in demand for U.S. corn, soybeans and wheat in 2008. “There seems to be no immediate end to it,” Good said. Federal projections of a need for more grain and land to grow it contributed to all-time highs in the past week of $5.65 a bushel for corn (July 2009 contracts) and $14.03 per bushel for soybeans (July 2008 contracts) on the Chicago Board of Trade. Spring wheat reached a high of $15 a bushel on the Minneapolis Grain Exchange.

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