Knobias ClipReport (8-24-2007)
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Submitted from Knobias ClipReport
The cost of food has risen dramatically as many are already aware. The cost of corn and other commodities used as feed or actual raw material to produce other products have risen causing the final products to gain in price to offset the cost of rising raw materials. Because of the government’s plans to increase the use of ethanol, the cost of corn could continue to rise in the long term, and adding to the inflationary problem, the Fed ignores food and energy prices when gauging these inflationary concerns.
With the rising food prices, investors might want to hedge the cost of food by adding agricultural, food, or commodity related names to their portfolio.
