Grocery prices continue to drop
The cost of basic food items at the grocery store is continuing to drop, according to a new survey by the American Farm Bureau Federation.
The bureau's quarterly Marketbasket Survey showed a 22-cent drop from the spring in the cost of 16 basic grocery items.
The $34.98 tab for the items is a 72-cent decline from a year earlier.
Farm bureau economist Terry Francl said weather-related problems that harmed crops this summer will not cause grocery store prices to rise any time soon.
He said that the crop losses mainly hurt animal feed, "which results in a lagged effect on consumer food prices." It would be about one year before farmer reaction to higher feed cost will be reflected in lower animal production and higher meat prices in the grocery store.
Of the 16 items included in the farm bureau survey, 11 had lower costs while five increased in price.
The largest decrease was the cost of cheddar cheese, dropping by 21 cents to $3.24 per pound.
Other items with lower prices included pork chops, mayonnaise, oat cereal, all-purpose flour, whole fryers, vegetable oil, bacon, white bread, red delicious apples and corn oil.
The largest increase was for russet potatoes, which rose 41 cents to $2.63 per 5-pound bag.
Other items with higher prices were ground chuck, eggs, sirloin tip roast and whole milk.
The survey has shown grocery store prices increasing throughout the years. The $34.98 total for this summer is $6.48 higher than the $28.50 cost shown in the first survey in 1989.
But farm bureau officials note that the share of the average food dollar that winds up going to farm and ranch families has decreased.
The farm bureau cited Agriculture Department statistics showing that farmers and ranchers in the United States received 19 cents of each dollar spent on food. That is down from 31 cents in 1980.
McDonald's:
McDonald's is using a new type of cooking oil in its U.S.-based franchises to reduce trans-fatty acids in its fried foods.
McDonald's worked with Cargill Inc. to develop a formula for the oil that will supposedly produce healthier food. Officials say the new oil will reduce trans-fatty acid levels in fries by 48 percent and saturated fats by 16 percent and will increase polyunsaturated fat by 167 percent.
"This leadership initiative is all about giving our customers a wide range of wholesome choices, the highest quality ingredients and the same great taste that they have come to expect," McDonald's USA President Mike Roberts said.
The company said it is the first fast-food company to set a goal of eliminating tran- fatty acids in cooking oil. Use of the new oil will begin next month, and it will be used at all 13,000 franchises by February.
Crop yields:
The U.S. Agriculture Department will allow differing types of documentation to be offered for farmers to show crop yields, if they elect to do so under direct and counter-cyclical payment programs.
Farmers who wish to establish or update crop yields typically need actual verifiable production evidence of their crops, such as weight tickets, loan deficiency payments, crop insurance appraisals or sales records.
But Agriculture Secretary Ann Veneman said Tuesday that some crops are harvested in ways that do not allow for tangible records of production. Farmers of those crops will be allowed to submit crop yield estimates, as long as it can be shown that similar farms produced those yields.
Soybean meal:
Several agricultural groups are upset with Wilmington Bulk LLC and Louis Dreyfus Corp., which are working together to import soybean meal grown and produced in Brazil, rather than purchasing U.S.-grown meal.
The shipment arrived during the weekend at a port facility in Wilmington, N.C.
The American Soybean Association, the American Farm Bureau, the National Association of Wheat Growers and National Corn Growers Association all were upset over what they fear could become a trend.
"This importation isn't likely to be an isolated incident," AFB President Bob Stallman said. "This affects a much broader segment of agriculture than soybeans alone. All producers need to be involved, and we need to work together to address domestic transportation problems."
Crop progress:
The National Agricultural Statistics Service reported Tuesday that 97 percent of the soybean crop is setting pods, compared with 93 percent last week, and 97 percent both last year and average for the past five years. Seven percent of the crop is dropping leaves, compared with 3 percent last week, 10 percent last year and 9 percent the past five years. Forty-six percent of the crop is expected to be excellent or good, with 30 percent fair and 24 percent poor or very poor.
For corn, 63 percent of the crop is dented, compared with 44 percent last week, 65 percent last year and the past five years. Sixteen percent of the crop is mature, compared with 9 percent last week, 19 percent last year and 17 percent the past five years. Forty-one percent of the crop is expected to be excellent or good, compared with 29 percent fair and 30 percent poor or very poor.
For cotton, 40 percent of the crop is opening, compared with 29 percent last week, 40 percent last year and 39 percent the past five years. Fifty-four percent of the crop is expected to be excellent or good, compared with 29 percent fair and 17 percent poor or very poor.
For sorghum, 93 percent of the crop is heading, compared with 87 percent last week, 97 percent last year and 96 percent the past 5 years. Sixty-six percent of the crop is coloring, compared with 52 percent last week, 74 percent last year and 68 percent the past 5 years. Thirty-three percent is mature, compared with 25 percent last week, 40 percent last year and 34 percent the past 5 years. Twenty-one percent of the crop is expected to be excellent or good, with 33 percent fair and 46 percent poor or very poor.
For spring wheat, 66 percent of the crop is harvested, compared with 54 percent last week, 87 percent last year and 80 percent the past five years.
For barley, 71 percent of the crop is harvested, compared to 56 percent last week, 86 percent last year and 81 percent the past five years.
For oats, 92 percent of the crop is harvested, compared to 88 percent last week, 97 percent last year and 95 percent the past five years.
For rice, 24 percent of the crop is harvested, compared to 18 percent last week, 26 percent last year and 23 percent the past five years.
Grains:
Grain futures were higher at the close of activity Tuesday on the Chicago Board of Trade.
Soybean futures rose due to excitement by traders over the dry, warm weather that occurred during the weekend in key growing areas.
Wheat and oats futures went up on worries about global supplies, which could result in more purchases of the U.S.-grown crops.
Corn futures increased because of the influence of wheat and oats price hikes.
The prices:
Soybeans: Sep 5.59 3/4 up 3/4, Nov 5.49 1/2 up 4 3/4, Jan 5.51 up 5, Mar 5.51 1/2 up 4 1/4.
Corn: Sep 2.65 3/4 up 6 1/4, Dec 2.74 1/4 up 6 1/4, Mar 2.80 1/4 up 6 1/2, May 2.82 1/2 up 5 1/2.
Wheat: Sep 3.67 up 4 3/4, Dec 3.74 1/4 up 4 1/4, Mar 3.79 3/4 up 2 1/4, May 3.71 1/2 up 3 3/4.
Oats: Sep 1.90 up 12 1/2, Dec 1.92 3/4 up 8 1/2, Mar 1.87 1/4 up 6 1/4, May 1.83 1/4 up 4.
