The government predicts food inflation of 2.5 to 3.5-percent this year. That’s lower than the 3.7-percent of 2011 – but according to Bloomberg would be higher than gains in as many as five of the past eight years. Purdue Ag Economist Corinne Alexander says consumers will see additional price gains this year. And if high prices lead to large world crops – she says there won’t be any relief for consumers until later in the year.
USDA releases the latest World Agricultural Supply and Demand Estimates report this (Tuesday) morning at 7:30 Central time. The average trade guess expects corn inventories on August 31 will be 37-percent lower than a year ago at 715-million bushels. That’s down from last month’s 801-million bushel projection. As for soybeans – the average trade guess is 242-million bushels – down from a March prediction of 275-million.
Source: NAFB News Service