Drought to force food prices up
MINNEAPOLIS -- The most severe and extensive drought in at least 25 years is seriously affecting both livestock and crop farmers.
As a result, Michael Boland, head of the University of Minnesota's Food Industry Center, says you will likely see some of the quickest price increases for beef, pork, poultry and dairy products -- especially milk.
The full effects of the increase in corn prices for packaged and processed foods will likely take 10-to-12 months to move through to retail food prices.
How does the purchase of a wheat market by a rival grain exchange affect the price of a membership on the Minneapolis Grain Exchange? As of today, it turns out to be a lot more expensive to buy a seat to trade commodity futures in Minnesota. The price jumped 17-percent on Wednesday after news that the Chicago CME bought the Kansas City Board of Trade for $126-million-dollars. The cost of a membership now at the Minneapolis Grain Exchange goes for $95,000, compared to $81,000 back in August.