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Originally Posted by spanky part 2
Did you maybe think that corn and wheat are high do to the high prices of gas...maybe...maybe.
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There was an excellent article in the the Economist a few months back on rising food prices. One of the more interesting conclusions was that increasing wealth in India, China and other parts of the world has increased meat consumption which in turn increases the prices of the products used to feed the livestock.
Changes in demand for grains are supposed to outstrip supply until at least 2015 which should be good for an increase in price of 10-15%
The other factor was the massive new demand for ethanol and the article concluded that this was the number one factor in the increase in recent grain prices . Rising grain prices cause an increase in feeding costs which then cause an increase in meat prices etc etc.
I can scan the article for you later if interested.
Then of course you have money supply inflation and a general commodity bubble especially as we have seen funds created for the sole purpose of investing in commodities.
And yes, rising transportation costs do increase prices of other goods. To what extent you might want to say soy or wheat prices have increased as a result of rising oil prices I don't know.