Commodities prices at 6 year highs

[Mike Nolan]

The Wall Street Journal says commodity prices for wheat, corn and soybeans are at 6 year highs, due largely to dry weather affecting yields. Exports to China are also up, lowering US stockpiles, which are also at multi-year lows. Prices at the retail level are starting to be affected, too. (But inflation is already a lot higher than the government claims it is, I bought a jar of pickles the other day at $4.99, it was $3.59 a year ago.)

Acres in production for these crops could go up in 2021 as a result.

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[Italiancook]

Mike, am I wrong? Can't recall how many years ago, but I thought there was a change to how the government considers groceries in the inflation statistics. My memory tells me they made groceries less important in the overall formula. Am I just imagining this?

[Mike Nolan]

They tweak the 'basket' every year or two, I believe, but it never seems to capture the inflation I see occurring at the grocery store. Maybe I just don't buy the same things as the people they sample? (Then again, it may be that the people who respond to the survey don't provide accurate data on their purchasing habits, which would be the same problem pollsters are having with predicting election results.)

[BakerAunt]

I also think that grocery prices have been climbing over the past few years. Of course, I'm also living in a more rural area where the shopping choices are limited.

[Mike Nolan]

When we were in Hawaii a year ago, some items were incredibly expensive, a gallon of milk costs $10. Produce was usually pretty decently priced, and fish was fairly cheap too.

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