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need to know
Apple loses key Beats1 radio executive
China stocks surge amid suspected govt buys
Oil falls, but still eyes weekly gain
European stocks pull back | FTSE 100 seesaws
Amgen gets FDA OK for cholesterol treatment
Student dies after shooting at Savannah State
Icahn discloses stake in Freeport McMoRan
Migrant death toll in truck near Vienna now 70

John Bogle sees promise in market pullbacks

Why you should worry and be happy that stocks aren’t a sure bet
Both worry, be happy that stocks aren’t a sure bet

Apple Watch shipments  surprise IDC

Apple to host Sept. 9 product event
Apple closes in on Fitbit in wearables

Poland looks next to turn against the EU

China wins the Battle of Mountain Pass
China wins the Battle of Mountain Pass


U.K. pound caught in euro-dollar crossfire

New Orleans 10 years after Hurricane Katrina
Hurricane Katrina: Then and now
Obama in New Orleans to mark 10 years


These are the best jobs for millennials
These are the best jobs for millennials

When your Chinese food arrives by plane


Instead of flavored vodka, flavored sake?

Craft beer acquisition by Duvel — stay small, stay beautiful
Duvel’s beer deal: stay small, beautiful


How momentum investing could go out of style
Momentum investing could be going out of style

One billion people logged onto Facebook Monday in new company milestone
1 billion people used Facebook in one day

Poll shows Biden running stronger than Clinton
Republican wants more than the sequester

Wal-Mart Christmas shopping starts now

Wal-Mart explains halt to selling some guns

Donald Trump says he’s OK with raising taxes on himself
Trump: I’m OK with raising taxes on myself

Bezos is clear about what Amazon’s culture is

Sorry, Uber, but this is the end of the IPO party

Jim Rogers: Don’t rule out a commodity bull run
Commodities are ripe for a rebound

How the media just can’t spot economic crisis

How to cope when you’re suddenly uninsured

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171.98MDow Volume:
Avg Vol: 111.57M
Unchanged
150
Decliners
1105
Advancers
5358
Price Chg %Chg 1 Day
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Dow
/quotes/zigman/627449/realtime 16,655 +369 2.27%
Nasdaq
/quotes/zigman/12633936/realtime 4,813 +115 2.45%
S&P 500
/quotes/zigman/3870025/realtime 1,988 +47 2.43%
GlobalDow
/quotes/zigman/629063/realtime 2,368 +7 0.31%
Gold
/quotes/zigman/662444/delayed 1,124 +1 0.09%
Oil
/quotes/zigman/2331095/delayed 42.26 -0.30 0.70%
FTSE 100
/quotes/zigman/3173262/delayed 6,160 -32 0.52%
DAX
/quotes/zigman/2380246/delayed 10,255 -61 0.59%
CAC 40
/quotes/zigman/3173214/delayed 4,638 -20 0.43%
FTSE MIB
/quotes/zigman/1482176/delayed 21,973 -228 1.03%
IBEX 35
/quotes/zigman/2759620/delayed 10,278 -13 0.12%
Stoxx 600
/quotes/zigman/2380150/delayed 359 -3 0.77%
Asia Dow
/quotes/zigman/6959860/realtime 2,797 +44 1.61%
Nikkei 225
/quotes/zigman/5986735/delayed 19,136 +562 3.03%
Hang Seng
/quotes/zigman/2622475/delayed 21,612 -226 1.04%
Shanghai
/quotes/zigman/1859015/delayed 3,232 +149 4.82%
Sensex
/quotes/zigman/1652085/delayed 26,392 +161 0.61%
Singapore
/quotes/zigman/1709939/delayed 2,956 +11 0.36%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.00 0.12%
Yen
/quotes/zigman/16008150/realtime/sampled 120.86 -0.17 0.14%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 0.00 0.09%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.31%
DXY Index
/quotes/zigman/1652083/delayed 95.67 -0.09 0.10%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.32 +0.05 0.06%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.16 -0.02 1.05%
German 10y
/quotes/zigman/15866409/realtime 0.72 -0.03 3.79%
Italy 10yr
/quotes/zigman/15866497/realtime 1.92 -0.01 0.49%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 +0.00 0.10%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.83 -0.04 2.30%
Japan 10yr
/quotes/zigman/15866525/realtime 0.38 -0.01 2.48%
Crude Oil
/quotes/zigman/2331095/delayed 42 0 0.70%
Gold
/quotes/zigman/662444/delayed 1,124 +1 0.09%
Corn
/quotes/zigman/7599553/delayed 376 +1 0.33%
DJIA F
/quotes/zigman/38649152/delayed 16,525 -125 0.75%
S&P F
/quotes/zigman/30356461/delayed 1,974 -15 0.77%
Silver
/quotes/zigman/3134148/delayed 14 0 0.46%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.73 2.54 2.91%
AAPL /quotes/zigman/68270/composite 112.92 3.23 2.94%
GOOG /quotes/zigman/30194416/composite 637.61 8.99 1.43%
BAC /quotes/zigman/190927/composite 16.44 0.38 2.37%
C /quotes/zigman/5065548/composite 53.44 1.16 2.22%
F /quotes/zigman/264304/composite 13.56 0.35 2.65%
T /quotes/zigman/398198/composite 33.44 0.75 2.29%
BP /quotes/zigman/247026/composite 33.03 1.93 6.21%
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5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

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Rising Corn Prices and Your Grocery Bill

———

Corn prices are nearing the record highs of last summer as the U.S. Midwest suffers its worst drought since 1956. Shoppers should expect higher grocery bills, because corn is used in three-quarters of supermarket products.

But don’t panic. Overall cost hikes are likely to be modest.

“A 50% increase in the price of corn tends to raise total shopping bills by about 1%,” says Ricky Volpe, a research economist with the U.S. Department of Agriculture. Corn’s price has jumped 45% this summer. Of course, even a modest increase to shopping bills is unwelcome news for households on tight budgets.

Strange as it may seem, farm crops aren’t nearly the largest component of food prices. In 2008, just 15.8 cents of each dollar shoppers spent on food went to farms, according to the USDA.  The rest paid for labor, packaging, transportation, advertising and more.

Broken down by industry, food processors, which turn crops into things like cereals, sweets and oils, capture nearly twice as much of consumers’ food spending as farmers, and foodservice companies, more than three times as much.

Also See:

The effect of rising corn prices will vary sharply by food, however, based largely on the amount of processing involved. Farms collect just 7% of the retail price of cereal and baked goods, but 14% of ice cream, 37% of butter, and 46% of whole milk. They collect 51% of retail beef prices and 34% of pork.

How high might prices climb? The USDA issues food price forecasts on the 25th of each month. The June forecast (issued when corn was just under $6 a bushel, versus close to $7.80 now) called for price increases of 2.5% to 3.5% this year for food eaten at home, versus a 4.8% last year and a 2.8% yearly increase, on average, over the past two decades. The 2012 forecast includes 4% to 5% increases for beef, 1% to 2% for eggs and 2% to 3% for dairy.

For affected foods, prices should start to rise in about two months, says Mr. Volpe. The first items to be hit will be dairy and eggs, because of the relatively short time between when cows and chickens consume corn feed and those products go to market. Next will be meats, in order of animal size, starting with chicken and leading to beef.

The July 25 forecast will be more telling, because it will take greater account of higher corn prices. It will also reflect a change in the direction of energy prices. U.S. crude oil hit a nine-month low of $77.28 a barrel on June 28, but has since climbed 14%. Energy makes up 3.5 cents of each dollar shoppers spend on food.

Shoppers can make some rough estimates of their own. A bushel of corn is 56 pounds, so with corn near $7.80 a bushel, it costs about 14 cents a pound. It takes 2.6 pounds of corn to produce one pound of steer, 3.6 pounds per pound of hog and two pounds per pound of chicken, according to data collected by the National Corn Growers Association from various meat trade groups. Eggs require four pounds of corn per dozen and milk, 1.8 pounds of corn per gallon.

Food and beverages, including restaurant meals, make up 15% of the money a typical consumer spends, according to the Bureau of Labor Statistics.

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (5 of 276)

View all Comments »
    • I don’t have a lot of knowledge on economics, but as a truck driver, I have a lot of experience hands on with supply and demand. As many other comments I am sure say (haven’t read through them all yet), prices are guaranteed to go sky high. I would myself expect things to near double that are corn reliant. Soda, Tea, Cows, Milk, Eggs, Beer, All Oils, pretty much everything. Its common sense people, if you have 1,000 people, but only enough food to feed 500, the prices go up enough so that the poor can spend their every dime to survive and the rich will just take a diet. They will do their best to keep everyone calm and find a way to survive, and i say, Yes, have faith, but this drought is 3 times worse than the dust bowl that sent us into a great depression. We are a lot more technologically advanced and have a lot more cropable land now though, so I would say it is only JUST as bad as the dust bowl, but that is pretty severe indeed. Time to start that diet, and look on the brighter side… Florida did modestly well this year, which means a lot of healthy produce will still have agreeable prices. Just pray hurricanes down swallow it.

    • Ths is ridiculous . Take the corm out of our food. We don’t need it. It just makes us fat.
      Feed it ALL to the livestock!i

    • So why don’t we get rid of the federal subsidies for corn? I thought most of the people that read the WSJ would be in favor of “smaller government”.

    • Answer: Hunt. You do not have to invest anything into feed. Nature takes care of that. You do not have to be there seven days per week to take care of the livestock. You get away from these massive factory farms that pollute everything. I get all of my meat from nature; red meat, fowl, fish, seafood. And on top of that I have never eaten dog.

    • Alan,

      What I saw was the VEETC was translated into a reduction in the price of the finished fuel because the rack price of e10 was X, and the invoice to the final customer received a discount nearly the same as the value of the credit, with perhaps a small holdback to pay the credit paperwork that had to be filled out on the 720 or the other form that I can’t remember. If the blender of record and the customer was the oil company, then yes, the VEETC went to that oil company.

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MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

New York Markets Open in:

Futures: /quotes/zigman/30356461/delayed S&P 500 -0.8% /quotes/zigman/38649152/delayed DOW -0.8% /quotes/zigman/30356458/delayed NASDAQ -0.7%

need to know
Apple loses key Beats1 radio executive
China stocks surge amid suspected govt buys
Oil falls, but still eyes weekly gain
European stocks pull back | FTSE 100 seesaws
Amgen gets FDA OK for cholesterol treatment
Student dies after shooting at Savannah State
Icahn discloses stake in Freeport McMoRan
Migrant death toll in truck near Vienna now 70

John Bogle sees promise in market pullbacks

Why you should worry and be happy that stocks aren’t a sure bet
Both worry, be happy that stocks aren’t a sure bet

Apple Watch shipments  surprise IDC

Apple to host Sept. 9 product event
Apple closes in on Fitbit in wearables

Poland looks next to turn against the EU

China wins the Battle of Mountain Pass
China wins the Battle of Mountain Pass


U.K. pound caught in euro-dollar crossfire

New Orleans 10 years after Hurricane Katrina
Hurricane Katrina: Then and now
Obama in New Orleans to mark 10 years


These are the best jobs for millennials
These are the best jobs for millennials

When your Chinese food arrives by plane


Instead of flavored vodka, flavored sake?

Craft beer acquisition by Duvel — stay small, stay beautiful
Duvel’s beer deal: stay small, beautiful


How momentum investing could go out of style
Momentum investing could be going out of style

One billion people logged onto Facebook Monday in new company milestone
1 billion people used Facebook in one day

Poll shows Biden running stronger than Clinton
Republican wants more than the sequester

Wal-Mart Christmas shopping starts now

Wal-Mart explains halt to selling some guns

Donald Trump says he’s OK with raising taxes on himself
Trump: I’m OK with raising taxes on myself

Bezos is clear about what Amazon’s culture is

Sorry, Uber, but this is the end of the IPO party

Jim Rogers: Don’t rule out a commodity bull run
Commodities are ripe for a rebound

How the media just can’t spot economic crisis

How to cope when you’re suddenly uninsured

/conga/frontpage.html 353539

Markets »

171.98MDow Volume:
Avg Vol: 111.57M
Unchanged
150
Decliners
1105
Advancers
5358
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,655 +369 2.27%
Nasdaq
/quotes/zigman/12633936/realtime 4,813 +115 2.45%
S&P 500
/quotes/zigman/3870025/realtime 1,988 +47 2.43%
GlobalDow
/quotes/zigman/629063/realtime 2,368 +7 0.31%
Gold
/quotes/zigman/662444/delayed 1,124 +1 0.09%
Oil
/quotes/zigman/2331095/delayed 42.26 -0.30 0.70%
FTSE 100
/quotes/zigman/3173262/delayed 6,160 -32 0.52%
DAX
/quotes/zigman/2380246/delayed 10,255 -61 0.59%
CAC 40
/quotes/zigman/3173214/delayed 4,638 -20 0.43%
FTSE MIB
/quotes/zigman/1482176/delayed 21,973 -228 1.03%
IBEX 35
/quotes/zigman/2759620/delayed 10,278 -13 0.12%
Stoxx 600
/quotes/zigman/2380150/delayed 359 -3 0.77%
Asia Dow
/quotes/zigman/6959860/realtime 2,797 +44 1.61%
Nikkei 225
/quotes/zigman/5986735/delayed 19,136 +562 3.03%
Hang Seng
/quotes/zigman/2622475/delayed 21,612 -226 1.04%
Shanghai
/quotes/zigman/1859015/delayed 3,232 +149 4.82%
Sensex
/quotes/zigman/1652085/delayed 26,392 +161 0.61%
Singapore
/quotes/zigman/1709939/delayed 2,956 +11 0.36%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.00 0.12%
Yen
/quotes/zigman/16008150/realtime/sampled 120.86 -0.17 0.14%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 0.00 0.09%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.31%
DXY Index
/quotes/zigman/1652083/delayed 95.67 -0.09 0.10%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.32 +0.05 0.06%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.16 -0.02 1.05%
German 10y
/quotes/zigman/15866409/realtime 0.72 -0.03 3.79%
Italy 10yr
/quotes/zigman/15866497/realtime 1.92 -0.01 0.49%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 +0.00 0.10%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.83 -0.04 2.30%
Japan 10yr
/quotes/zigman/15866525/realtime 0.38 -0.01 2.48%
Crude Oil
/quotes/zigman/2331095/delayed 42 0 0.70%
Gold
/quotes/zigman/662444/delayed 1,124 +1 0.09%
Corn
/quotes/zigman/7599553/delayed 376 +1 0.33%
DJIA F
/quotes/zigman/38649152/delayed 16,525 -125 0.75%
S&P F
/quotes/zigman/30356461/delayed 1,974 -16 0.78%
Silver
/quotes/zigman/3134148/delayed 14 0 0.50%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.73 2.54 2.91%
AAPL /quotes/zigman/68270/composite 112.92 3.23 2.94%
GOOG /quotes/zigman/30194416/composite 637.61 8.99 1.43%
BAC /quotes/zigman/190927/composite 16.44 0.38 2.37%
C /quotes/zigman/5065548/composite 53.44 1.16 2.22%
F /quotes/zigman/264304/composite 13.56 0.35 2.65%
T /quotes/zigman/398198/composite 33.44 0.75 2.29%
BP /quotes/zigman/247026/composite 33.03 1.93 6.21%
GE /quotes/zigman/227468/composite 25.01 1.00 4.16%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
Please log in to view your watchlist
MarketWatch Portfolio

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Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
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  • /quotes/zigman/1494100/composite OIL+10.99%
  • /quotes/zigman/4194817/composite SCO-18.98%
  • /quotes/zigman/8669138/composite DWTI-28.79%
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