{"id":183183,"date":"2021-02-19T21:01:00","date_gmt":"2021-02-19T18:01:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/why-food-costs-arent-done-climbing-yet\/"},"modified":"2021-02-19T21:01:00","modified_gmt":"2021-02-19T18:01:00","slug":"why-food-costs-arent-done-climbing-yet","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/why-food-costs-arent-done-climbing-yet\/","title":{"rendered":"#\n  Why food costs aren\u2019t done climbing yet"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3df6870a334\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3df6870a334\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/why-food-costs-arent-done-climbing-yet\/#Myra_P_Saefong\" >Myra P. Saefong<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Why food costs aren\u2019t done climbing yet<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000172330\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       More American consumers ate at home last year because of the pandemic, contributing to the largest yearly rise in food-at-home prices in nine years.<\/p>\n<p> Food costs are expected to increase further in 2021. \u201cThis year, food price inflation is certainly a concern,\u201d says Isaac Olvera, lead economist ArrowStream, a supply-chain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> firm for the food services industry.<\/p>\n<div class=\"paywall\">\n       Food prices in 2020 increased by 3.9% from 2019, according to the U.S. Bureau of Labor Statistics (BLS). Prices for the food-at-home category, where the buyer is the consumer, also\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bls.gov\/opub\/ted\/2021\/consumer-price-index-2020-in-review.htm\" class=\"icon none\">climbed at the same 3.9% rate last year<\/a>, the largest yearly rise since 2011.<\/p>\n<p>The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ers.usda.gov\/data-products\/food-price-outlook\/\" class=\"icon none\">U.S. Department of Agriculture forecasts<\/a> an increase of 2% to 3% for food prices this year, compared with a 20-year historical average increase of 2.4%. Prices of food-away-from-home\u2014served by restaurants and other services\u2014are also expected to rise by 2% to 3%, while food-at-home prices are forecast to climb by 1% to 2%, the government agency said.<\/p>\n<p>Food inflation is at almost twice the Federal Reserve\u2019s inflation target, says Sal Gilbertie, president and chief investment officer at Teucrium Trading. Meats and grains, and grain products such as bread, show \u201cmuch higher overall rates of inflation,\u201d he says.\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bls.gov\/news.release\/cpi.t02.htm\" class=\"icon none\">BLS data<\/a>\u00a0reveal an unadjusted increase of 5.5% in the meats expenditure category from January 2020 to January 2021.<\/p>\n<p>Gilbertie attributes that higher inflation rate to the rise in grain prices and the \u201cfailure and subsequent rebuild of China\u2019s hog herd.\u201d The Chinese had to import huge amounts of animal proteins to replace the lack of meat from hog herds hit hard by African swine fever. Then China imported grains to feed the hogs as the nation worked to rebuild their numbers, he says.<\/p>\n<p>Corn<br \/>\n        CH21,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209719032\/delayed\" class=\"negative\">-1.00%<\/bg-quote><\/p>\n<p>        C00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209710348\/delayed\" class=\"negative\">-1.00%<\/bg-quote><br \/>\n       and soybean<br \/>\n        SH21,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210314441\/delayed\" class=\"positive\">+0.33%<\/bg-quote><\/p>\n<p>        S00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210304009\/delayed\" class=\"positive\">+0.33%<\/bg-quote><br \/>\n       prices are higher so far this year. Last year, corn futures climbed by nearly 25%, wheat<br \/>\n        WK21,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210393178\/delayed\" class=\"negative\">-1.16%<\/bg-quote><\/p>\n<p>        W00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210389638\/delayed\" class=\"negative\">-1.16%<\/bg-quote><br \/>\n       was up almost 15% and soybeans rose by more than 37%.<\/p>\n<p>China is behind most of the increase for corn and soybeans, says Olvera. Brazil and the U.S. supply the bulk of the beans to China and last year. Brazil essentially ran out of exportable soybean supplies and was actually importing them.<\/p>\n<p>Among the biggest reasons for the rise in food costs last year, however, was the packing plant disruptions caused by workers suffering from the coronavirus that left many meat processing facilities closed, Olvera says. \u201cPacking plants were shuttered and beef, pork and poultry production were stunted\u201d he says, as consumers flocked to grocery stores to buy up supplies.<\/p>\n<p>Retail food demand this year remains \u201crobust,\u201d says Olvera, with prices\u00a0across the protein complex\u00a0above year-ago levels. So far this year, futures prices for lean hogs<br \/>\n        LHJ21,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/214641135\/delayed\" class=\"negative\">-1.06%<\/bg-quote><\/p>\n<p>        LH00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210116419\/delayed\" class=\"negative\">-1.06%<\/bg-quote><br \/>\n       have climbed by round 20%, while feeder cattle<br \/>\n        FCJ21,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/218228742\/delayed\" class=\"positive\">+0.32%<\/bg-quote><\/p>\n<p>        FC00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209978659\/delayed\" class=\"positive\">+0.38%<\/bg-quote><span>,<\/span><br \/>\n       or cattle sent to the feedlots, have seen a modest fall.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Olvera says the climb in lean hogs this year is due partly to elevated feed costs. \u201cMany traders are placing bets on pork supplies and export expectations,\u201d and the market is suggesting that \u201cdomestic pork availability may be tight through midyear.\u201d<\/p>\n<p>Feeder cattle prices have come under pressure on the back of corn price increases. Since corn is used in feed, cattlemen are likely losing money on feedlot cattle, says Olvera. There may be less cattle and tighter supplies of beef in the second half of this year, he says, adding that he continues to view beef demand as strong.<\/p>\n<p>Reopening restaurants will be inflationary, as wholesale food supplies will be reallocated between retail and food service, Olvera says, though it\u2019s unknown how actively consumers will return to restaurants in a post-pandemic world.<\/p>\n<p>In the long run, \u201cwe certainly believe that the consumer has changed and this change will force\u2026the food service industry to become more agile,\u201d he says.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Myra P. Saefong\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Myra_P_Saefong\"><\/span>Myra P. Saefong<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D2A12A0539EE%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Why food costs aren\u2019t done climbing yet &#8221; More American consumers ate at home last year because of the pandemic, contributing to the largest yearly rise in food-at-home prices in nine years. Food costs are expected to increase further in 2021. \u201cThis year, food price inflation is certainly a concern,\u201d says Isaac Olvera, lead&#8230;<\/p>\n","protected":false},"author":1,"featured_media":183184,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-183183","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/183183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=183183"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/183183\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/183184"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=183183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=183183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=183183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}