Rising Corn Prices Could Push Up cost of Animal Products

Concerns over the affect of the drought on food prices has many people concerned, with the immediate effect probably showing up in the boost in price of animal products.

According to the USDA, animal products projected to rise in price include pork, butter, eggs and cheese.

Other prices also almost sure to rise are beef, poultry, fish raised by farmers, milk, sour cream, yogurt, cream cheese and ice cream, to name a few.

All of these have significant corn inputs which are costing more because of the devastated crop.

Jim Rogers on Corn, Inflation, Supply an Demand

Billionaire investor and commodity expert Jim Rogers has been touting the inevitable rise in commodities in general, and agricultural commodities in particular, for some time, especially concerning the price of corn.

While monetary policies of the Federal Reserve are a disaster and have played a large part in the rise in commodity prices, it's not the entire story, says Rogers.

He points to the simple fact of supply and demand for corn and other commodities as a major factor in the price increase, and it isn't solely a dollar/inflation scenario moving corn prices.

Growing middle classes in China and India are the major impetus behind soaring corn and commodity prices, and having a growing amount of disposable income, along with the desire for better food, is a big part of the rise in food prices, even though a large part of that is from the misguided policies of the Federal Reserve and other central banks, who continue to debase currencies.