"A surprise contraction in the US corn supply will push up beef, pork and chicken prices in what parts of the industry warn will be a game changer.
With the US harvest halfway through, the US Department of Agriculture said the average corn field will yield 155.8 bushels per acre, 6.7 bushels less than its September estimate.
The impact of this is huge, a complete game changer, says Gregg Doud, chief economist of the National Cattlemens Beef Association. This is an all-time record change in corn yield from one month to the next. We were caught completely flat-footed.
The season-average farm price for corn, an integral part of the diet of protein animals, is projected to rise by 60 cents a bushel to between $4.60 and $5.40.
The beef industry is only this year recovering from the commodity price spikes of 2007 and 2008 events that led to a dramatic diminution of the number of cattle raised for slaughter.
Mr Doud said the spike in corn prices would push the cost of breeding cattle beyond the point where those costs could be passed along to consumers."
http://www.ft.com/cms/s/0/085c9966-d4c2-11df-b230-00144feabdc0.html
Got COCOA?
" US faces shortage of commodities including cocoa
Experts have revealed that, in September, US businesses faced a shortage of key commodities including cocoa powder; capacitors; electronic components; lubricants; and titanium dioxide.
The latest Manufacturing ISM Report On Business, found that the commodities that enjoyed the biggest price increases on US markets were aluminum; caustic soda; copper, corn and corrugate. The biggest price falls were seen in natural gas; and steel.
The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "While the headline number shows relative strength this month as the PMI reading of 54.4 % is still quite positive, the overall picture is less encouraging. The growth of new orders continued to slow, as the index is down significantly from its cyclical high of 65.9 % (January 2010)," he said.
"Production is currently growing at a faster rate than new orders, but it typically lags and would be expected to weaken further in the fourth quarter. Manufacturing has enjoyed a stronger recovery than other sectors of the economy, but it appears that weaker growth is the expectation for the fourth quarter. Both the inventories and backlog of orders indexes are sending strong negative signals of weakening performance in the sector.""
http://www.procurementleaders.com/news/latestnews/4102-us-faces-shortage-cocoa/