[NC28203]

>>>The quoted article has a nice graphic showing beef prices up 13%, sugar up 9%, milk up 10%.

However, current milk and egg prices are below September 2008 levels when quantitative easing took off. Prices are down year over year for a number of fruits and vegetables and beverages.

As I noted in an earlier post, the run-up in commodity food prices is not being driven by too many dollars, but is instead driven by fundamentals. Demand is up across the globe due to economic recovery and there have been supply issues due to lower crop output levels in key producing regions.

[NavVet]

And yet the WSJ has a prominent graphic showing milk prices up considerable year over year. And in the article where business owners claim that they are seeing 10-20+ increase in commodity prices I guess they are wrong as well. Don’t forget that one of the fundamentals is costs, and the dollar has been dropping like a rock, causing the price of fuel, fertilizer, feed, and all other things produced oil to go up in price, at least if that rag the WSJ is to be believed. Anyone who believes we can devalue the dollar by 20%, with no increase in wages and not see prices shoot up by a cooresponding amount doesn’t undertand fundamentals.