DENVER — Any money you save on gasoline if prices come down as expected in the coming weeks may go toward buying steaks, ribs and chicken for the barbecue.
Meat prices are expected to rise faster than overall food costs in 2012. Prices rose in the spring and may increase an additional 1 percent to 3 percent this summer. Grill masters will find bargains harder to come by as retailers attempt to recoup some of their higher costs.
Supermarket meat prices have increased because the number of cattle, hogs and chickens dropped last year in the U.S. after a wet spring delayed corn planting last year. Traders drove up the price of corn futures because supplies were low and demand was robust from livestock producers, ethanol processors and overseas buyers. Corn futures jumped to an all-time high of $7.87 per bushel last June.
Feedlot owners who use corn to fatten up cattle before slaughter felt the pinch. Hog and chicken producers cut back on the number of animals they raised to offset higher corn costs.
To read the rest of the story, please go to: The Associated Press