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need to know
European stocks snap 7-day losing streak
FTSE 100 wobbles after sinking to 3-year low
Nissan net jumps 25% on U.S., Europe sales
Moller-Maersk earnings hit by oil, freight falls
Flint mayor aims to replace lead pipes soon
Oil hovers above $28 | Dollar falls vs. yen

Asahi bids $3.5 bln for Peroni, Grolsch
What to expect from Whole Foods earnings
Japan stocks fall to lowest level since 2014

Why is everyone freaking out about ‘CoCos’?
Convertible bonds are alluring as stocks fall

Five questions that Janet Yellen must answer
Yellen may say goal is not to slow the economy
Fed: Too white, too male, too many bankers?
Expansion won’t die of old age: S.F. Fed study

Tim Cook deletes Super Bowl tweet after mockery

 
Supreme Court blocks Obama’s emissions plan
White House forecasts best growth in years
Obama proposes $4.1 trillion federal budget

 
In Bernie Sanders’s America, there’s no innovation

The sad truth of why retirement
is a myth

Why you should consider retiring abroad

IRS says identity thieves breached its systems
How to know if your tax preparer is a crook
Tax software firm warns of data breach
White House's lesson about online security

Is it wise to hold onto cash reserves?

Strategists argue stocks need a true purge

 
If you could predict one asset price, which would it be?

6 ways Obama would make college affordable
Do elite colleges really lead to higher salaries?
Make a lot of money without the Ivy League

Burberry sues, says J.C. Penney copied its designs
Hermès sales up 15% on euro, Asian demand

Americans quitting their jobs hit a nine-year high
NFIB survey hints wage gains are fleeting

What to know before buying Beyoncé tickets

The Twitter signal that’s giving investors hope
Tech money makers can’t make up for losers
Facebook, Amazon are the keys to this market

What ‘Chart of Doom’ says about a global recession
Recession in U.S.? Not happening, CEOs say

Why consumers may keep economy afloat

Recipe for less boring Oscar speeches

99 Cent Gas May Be on Its Way
99-cents-a-gallon gas may be on its way: 24/7 Wall St.
/conga/frontpage.html 367542

Markets »

127.74MDow Volume:
Avg Vol: 130.29M
Unchanged
156
Decliners
4273
Advancers
2073
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
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Dow
/quotes/zigman/627449/realtime 16,014 -13 0.08%
Nasdaq
/quotes/zigman/12633936/realtime 4,269 -15 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,852 -1 0.07%
GlobalDow
/quotes/zigman/629063/realtime 2,092 +7 0.35%
Gold
/quotes/zigman/33772884/delayed 1,184 -15 1.25%
Oil
/quotes/zigman/2260836/delayed 28.29 +0.35 1.25%
FTSE 100
/quotes/zigman/3173262/delayed 5,706 +73 1.30%
DAX
/quotes/zigman/2380246/delayed 9,109 +230 2.59%
CAC 40
/quotes/zigman/3173214/delayed 4,102 +104 2.60%
FTSE MIB
/quotes/zigman/1482176/delayed 16,767 +854 5.37%
IBEX 35
/quotes/zigman/2759620/delayed 8,238 +310 3.91%
Stoxx 600
/quotes/zigman/2380150/delayed 318 +8 2.67%
Asia Dow
/quotes/zigman/6959860/realtime 2,454 -17 0.69%
Nikkei 225
/quotes/zigman/5986735/delayed 15,713 -372 2.31%
Hang Seng
/quotes/zigman/2622475/delayed 19,288 +105 0.55%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 23,759 -262 1.09%
Singapore
/quotes/zigman/1709939/delayed 2,582 -41 1.57%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 -0.01 0.49%
Yen
/quotes/zigman/16008150/realtime/sampled 115.17 +0.05 0.04%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 +0.00 0.21%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 +0.00 0.50%
DXY Index
/quotes/zigman/1652083/delayed 96.25 +0.20 0.21%
WSJ $ Idx
/quotes/zigman/41508961/realtime 89.31 +0.03 0.03%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.77 +0.04 2.22%
German 10y
/quotes/zigman/15866409/realtime 0.26 +0.02 7.18%
Italy 10yr
/quotes/zigman/15866497/realtime 1.60 -0.08 4.87%
Spain 10yr
/quotes/zigman/15866444/realtime 1.68 -0.11 6.00%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.44 +0.02 1.57%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 +0.04 165.64%
Crude Oil
/quotes/zigman/2260836/delayed 28 +0 1.25%
Gold
/quotes/zigman/33772884/delayed 1,184 -15 1.25%
Corn
/quotes/zigman/25518691/delayed 360 -1 0.35%
DJIA F
/quotes/zigman/48241424/delayed 16,084 +125 0.78%
S&P F
/quotes/zigman/43106711/delayed 1,867 +18 0.99%
Silver
/quotes/zigman/32655632/delayed 15 0 1.84%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 99.54 -0.21 -0.21%
AAPL /quotes/zigman/68270/composite 94.99 -0.02 -0.02%
GOOG /quotes/zigman/59527964/composite 678.11 -4.63 -0.68%
BAC /quotes/zigman/190927/composite 12.20 -0.07 -0.57%
C /quotes/zigman/5065548/composite 37.51 -0.30 -0.79%
F /quotes/zigman/264304/composite 11.35 -0.24 -2.07%
T /quotes/zigman/398198/composite 36.65 -0.46 -1.24%
BP /quotes/zigman/247026/composite 28.95 -0.97 -3.24%
GE /quotes/zigman/227468/composite 28.28 0.11 0.39%
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Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
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 11.96% 11.96% 11.62%
Business 13.12% 13.12% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.35% 14.12%
Airline 15.17% 15.17% 15.10%
Cash Back 15.26% 15.26% 15.27%
Reward 15.28% 15.28% 15.14%
Instant Approval 18.21% 18.21% 18.00%
Bad Credit 22.88% 22.88% 22.73%
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/43106711/delayed S&P 500 +1.0% /quotes/zigman/48241424/delayed DOW +0.8% /quotes/zigman/43108768/delayed NASDAQ +1.4%

need to know
European stocks snap 7-day losing streak
FTSE 100 wobbles after sinking to 3-year low
Nissan net jumps 25% on U.S., Europe sales
Moller-Maersk earnings hit by oil, freight falls
Flint mayor aims to replace lead pipes soon
Oil hovers above $28 | Dollar falls vs. yen

Asahi bids $3.5 bln for Peroni, Grolsch
What to expect from Whole Foods earnings
Japan stocks fall to lowest level since 2014

Why is everyone freaking out about ‘CoCos’?
Convertible bonds are alluring as stocks fall

Five questions that Janet Yellen must answer
Yellen may say goal is not to slow the economy
Fed: Too white, too male, too many bankers?
Expansion won’t die of old age: S.F. Fed study

Tim Cook deletes Super Bowl tweet after mockery

 
Supreme Court blocks Obama’s emissions plan
White House forecasts best growth in years
Obama proposes $4.1 trillion federal budget

 
In Bernie Sanders’s America, there’s no innovation

The sad truth of why retirement
is a myth

Why you should consider retiring abroad

IRS says identity thieves breached its systems
How to know if your tax preparer is a crook
Tax software firm warns of data breach
White House's lesson about online security

Is it wise to hold onto cash reserves?

Strategists argue stocks need a true purge

 
If you could predict one asset price, which would it be?

6 ways Obama would make college affordable
Do elite colleges really lead to higher salaries?
Make a lot of money without the Ivy League

Burberry sues, says J.C. Penney copied its designs
Hermès sales up 15% on euro, Asian demand

Americans quitting their jobs hit a nine-year high
NFIB survey hints wage gains are fleeting

What to know before buying Beyoncé tickets

The Twitter signal that’s giving investors hope
Tech money makers can’t make up for losers
Facebook, Amazon are the keys to this market

What ‘Chart of Doom’ says about a global recession
Recession in U.S.? Not happening, CEOs say

Why consumers may keep economy afloat

Recipe for less boring Oscar speeches

99 Cent Gas May Be on Its Way
99-cents-a-gallon gas may be on its way: 24/7 Wall St.
/conga/frontpage.html 367542

Markets »

127.74MDow Volume:
Avg Vol: 130.29M
Unchanged
156
Decliners
4273
Advancers
2073
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 16,014 -13 0.08%
Nasdaq
/quotes/zigman/12633936/realtime 4,269 -15 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,852 -1 0.07%
GlobalDow
/quotes/zigman/629063/realtime 2,092 +7 0.35%
Gold
/quotes/zigman/33772884/delayed 1,184 -15 1.25%
Oil
/quotes/zigman/2260836/delayed 28.28 +0.34 1.22%
FTSE 100
/quotes/zigman/3173262/delayed 5,706 +74 1.31%
DAX
/quotes/zigman/2380246/delayed 9,110 +230 2.59%
CAC 40
/quotes/zigman/3173214/delayed 4,101 +103 2.58%
FTSE MIB
/quotes/zigman/1482176/delayed 16,763 +850 5.34%
IBEX 35
/quotes/zigman/2759620/delayed 8,238 +310 3.91%
Stoxx 600
/quotes/zigman/2380150/delayed 318 +8 2.65%
Asia Dow
/quotes/zigman/6959860/realtime 2,454 -17 0.69%
Nikkei 225
/quotes/zigman/5986735/delayed 15,713 -372 2.31%
Hang Seng
/quotes/zigman/2622475/delayed 19,288 +105 0.55%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 23,759 -262 1.09%
Singapore
/quotes/zigman/1709939/delayed 2,582 -41 1.57%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 -0.01 0.46%
Yen
/quotes/zigman/16008150/realtime/sampled 115.16 +0.04 0.04%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 +0.00 0.22%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 +0.00 0.50%
DXY Index
/quotes/zigman/1652083/delayed 96.26 +0.20 0.21%
WSJ $ Idx
/quotes/zigman/41508961/realtime 89.31 +0.03 0.03%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.77 +0.04 2.22%
German 10y
/quotes/zigman/15866409/realtime 0.26 +0.02 7.18%
Italy 10yr
/quotes/zigman/15866497/realtime 1.60 -0.08 4.87%
Spain 10yr
/quotes/zigman/15866444/realtime 1.68 -0.11 6.00%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.44 +0.02 1.57%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 +0.04 165.64%
Crude Oil
/quotes/zigman/2260836/delayed 28 +0 1.22%
Gold
/quotes/zigman/33772884/delayed 1,184 -15 1.25%
Corn
/quotes/zigman/25518691/delayed 360 -1 0.35%
DJIA F
/quotes/zigman/48241424/delayed 16,084 +125 0.78%
S&P F
/quotes/zigman/43106711/delayed 1,867 +18 0.99%
Silver
/quotes/zigman/32655632/delayed 15 0 1.84%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 99.54 -0.21 -0.21%
AAPL /quotes/zigman/68270/composite 94.99 -0.02 -0.02%
GOOG /quotes/zigman/59527964/composite 678.11 -4.63 -0.68%
BAC /quotes/zigman/190927/composite 12.20 -0.07 -0.57%
C /quotes/zigman/5065548/composite 37.51 -0.30 -0.79%
F /quotes/zigman/264304/composite 11.35 -0.24 -2.07%
T /quotes/zigman/398198/composite 36.65 -0.46 -1.24%
BP /quotes/zigman/247026/composite 28.95 -0.97 -3.24%
GE /quotes/zigman/227468/composite 28.28 0.11 0.39%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
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Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
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 11.96% 11.96% 11.62%
Business 13.12% 13.12% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.35% 14.12%
Airline 15.17% 15.17% 15.10%
Cash Back 15.26% 15.26% 15.27%
Reward 15.28% 15.28% 15.14%
Instant Approval 18.21% 18.21% 18.00%
Bad Credit 22.88% 22.88% 22.73%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
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Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

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  • Personalized news and quote email alerts
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