Here is what confuses me.
For years, I have read that in the typical box of cereal the cost of the raw corn material is about the same as the cardboard. In other words, most of the cost is in processing, marketing and profit.
If this is still true, how can even a 100% increase in the price of food corn create a large increase in the cost of cereal.
Seems like an excuse to raise prices.
Seems like an excuse to raise prices.
If they raise cereal prices much I think you are right. However meat, eggs, milk are much more dependent on the cost of feed. So we could see some quite dramatic increases on those foods.