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Dow, S&P's longest losing stretch in months
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US Foods files to go public
Salesforce CEO takes stake in Fitbit
U.S. government runs $55 billion budget surplus

Carly Fiorina drops out of presidential race

Expedia CFO: Airbnb not a threat at all

Private-equity firms now buying back their own shares
Share buyback machine remains in overdrive

A new ‘Harry Potter’ book is coming this summer

What Apple, Amazon and Starbucks have in common

Portland Trail Blazers guards Damian Lillard and C.J. McCollum live with ... mom
Meet the NBA stars who live with their mothers

Musician Lenny Kravitz owned the 19th-century Creole cottage in the French Quarter of New Orleans from 1994 to 2012. It's now back on the market at $1.16 million.

RE/Max N.O. Properties/Mansion Global
A bona fide celebrity abode — believe it or not
London house of the week has spiritual side
S.F. real estate looked like this in 2000, too
San Diego prices sending buyers northward
Location Scouts: Insider intel from top markets

A break for zombie-fighting Amazon developers

REIT bonus targets at heart of Brixmor scandal

Burberry sues, says J.C. Penney copied its designs
NRF expects retail sales to grow 3.1% in 2016

10 essential money questions to ask yourself today

Feds have removed a roadblock to driverless cars

Recipe for less boring Oscar acceptance speeches
Is James Bond’s Pinewood Studios for sale?

Why is everyone freaking out about ‘CoCos’?

If you’re bullish on oil, Chevron and Exxon are buys here
If you’re bullish on oil, these stocks are buys

Social Security in the crosshairs: replacement rates again
Stage is being set for cuts to Social Security

Tricky tax issues you should know about this year

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

Why you should consider retiring abroad
Finding the best places to retire abroad
Expat retirees: How life has turned out

Is it wise to hold on to cash reserves?


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

The 6 Most Shorted NYSE Stocks: Short Sellers Pile on Alcoa, Freeport-McMoRan Again
Short sellers pile on Alcoa, Freeport-McMoRan
24/7 Wall St.: Short sellers retreat from Nasdaq

Cheap oil may make OPEC dominant again
Existential threat to Russians and Saudis: Lynn

Will oil get so cheap, it won’t pay to extract it?


/conga/frontpage.html 367639

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122.29MDow Volume:
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Price Chg %Chg 1 Day
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/quotes/zigman/627449/realtime 15,915 -100 0.62%
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/quotes/zigman/12633936/realtime 4,284 +15 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,852 0 0.02%
GlobalDow
/quotes/zigman/629063/realtime 2,086 +6 0.28%
Gold
/quotes/zigman/33772884/delayed 1,199 +4 0.34%
Oil
/quotes/zigman/2260836/delayed 27.41 -0.04 0.15%
FTSE 100
/quotes/zigman/3173262/delayed 5,672 +40 0.71%
DAX
/quotes/zigman/2380246/delayed 9,017 +138 1.55%
CAC 40
/quotes/zigman/3173214/delayed 4,061 +64 1.59%
FTSE MIB
/quotes/zigman/1482176/delayed 16,714 +801 5.03%
IBEX 35
/quotes/zigman/2759620/delayed 8,144 +216 2.73%
Stoxx 600
/quotes/zigman/2380150/delayed 315 +6 1.87%
Asia Dow
/quotes/zigman/6959860/realtime 2,464 +10 0.43%
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 1.13 0.00 0.09%
Yen
/quotes/zigman/16008150/realtime/sampled 113.47 +0.12 0.11%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 +0.00 0.02%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 +0.00 0.10%
DXY Index
/quotes/zigman/1652083/delayed 95.82 -0.23 0.24%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.93 +0.04 0.05%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.67 0.00 0.00%
German 10y
/quotes/zigman/15866409/realtime 0.24 0.00 0.00%
Italy 10yr
/quotes/zigman/15866497/realtime 1.65 0.00 0.00%
Spain 10yr
/quotes/zigman/15866444/realtime 1.72 0.00 0.00%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.42 0.00 0.00%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 0.00 0.00%
Crude Oil
/quotes/zigman/2260836/delayed 27 0 0.15%
Gold
/quotes/zigman/33772884/delayed 1,199 +4 0.34%
Corn
/quotes/zigman/25518691/delayed 360 -1 0.21%
DJIA F
/quotes/zigman/48241424/delayed 15,828 -38 0.24%
S&P F
/quotes/zigman/43106711/delayed 1,842 -4 0.24%
Silver
/quotes/zigman/32655632/delayed 15 +0 0.18%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 101.00 1.46 1.47%
AAPL /quotes/zigman/68270/composite 94.27 -0.72 -0.76%
GOOG /quotes/zigman/59527964/composite 684.12 6.01 0.89%
BAC /quotes/zigman/190927/composite 11.98 -0.22 -1.80%
C /quotes/zigman/5065548/composite 37.41 -0.10 -0.27%
F /quotes/zigman/264304/composite 11.34 -0.01 -0.09%
T /quotes/zigman/398198/composite 36.43 -0.22 -0.60%
BP /quotes/zigman/247026/composite 28.04 -0.31 -1.09%
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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 15.20% 15.26% 15.27%
Reward 15.25% 15.28% 15.14%
Instant Approval 18.02% 18.21% 18.00%
Bad Credit 22.56% 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.

About Real-Time Advice

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MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert
need to know
Dow, S&P's longest losing stretch in months
Dollar drops to 15-month low vs. yen
Mylan reaches $7.2 bln deal for Sweden's Meda
Burger King to sell hot dogs starting Feb. 23
US Foods files to go public
Salesforce CEO takes stake in Fitbit
U.S. government runs $55 billion budget surplus

Carly Fiorina drops out of presidential race

Expedia CFO: Airbnb not a threat at all

Private-equity firms now buying back their own shares
Share buyback machine remains in overdrive

A new ‘Harry Potter’ book is coming this summer

What Apple, Amazon and Starbucks have in common

Portland Trail Blazers guards Damian Lillard and C.J. McCollum live with ... mom
Meet the NBA stars who live with their mothers

Musician Lenny Kravitz owned the 19th-century Creole cottage in the French Quarter of New Orleans from 1994 to 2012. It's now back on the market at $1.16 million.

RE/Max N.O. Properties/Mansion Global
A bona fide celebrity abode — believe it or not
London house of the week has spiritual side
S.F. real estate looked like this in 2000, too
San Diego prices sending buyers northward
Location Scouts: Insider intel from top markets

A break for zombie-fighting Amazon developers

REIT bonus targets at heart of Brixmor scandal

Burberry sues, says J.C. Penney copied its designs
NRF expects retail sales to grow 3.1% in 2016

10 essential money questions to ask yourself today

Feds have removed a roadblock to driverless cars

Recipe for less boring Oscar acceptance speeches
Is James Bond’s Pinewood Studios for sale?

Why is everyone freaking out about ‘CoCos’?

If you’re bullish on oil, Chevron and Exxon are buys here
If you’re bullish on oil, these stocks are buys

Social Security in the crosshairs: replacement rates again
Stage is being set for cuts to Social Security

Tricky tax issues you should know about this year

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

Why you should consider retiring abroad
Finding the best places to retire abroad
Expat retirees: How life has turned out

Is it wise to hold on to cash reserves?


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

The 6 Most Shorted NYSE Stocks: Short Sellers Pile on Alcoa, Freeport-McMoRan Again
Short sellers pile on Alcoa, Freeport-McMoRan
24/7 Wall St.: Short sellers retreat from Nasdaq

Cheap oil may make OPEC dominant again
Existential threat to Russians and Saudis: Lynn

Will oil get so cheap, it won’t pay to extract it?


/conga/frontpage.html 367639

Markets »

122.29MDow Volume:
Avg Vol: 131.80M
Unchanged
201
Decliners
3048
Advancers
3255
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 15,915 -100 0.62%
Nasdaq
/quotes/zigman/12633936/realtime 4,284 +15 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,852 0 0.02%
GlobalDow
/quotes/zigman/629063/realtime 2,086 +6 0.29%
Gold
/quotes/zigman/33772884/delayed 1,199 +4 0.34%
Oil
/quotes/zigman/2260836/delayed 27.41 -0.04 0.15%
FTSE 100
/quotes/zigman/3173262/delayed 5,672 +40 0.71%
DAX
/quotes/zigman/2380246/delayed 9,017 +138 1.55%
CAC 40
/quotes/zigman/3173214/delayed 4,061 +64 1.59%
FTSE MIB
/quotes/zigman/1482176/delayed 16,714 +801 5.03%
IBEX 35
/quotes/zigman/2759620/delayed 8,144 +216 2.73%
Stoxx 600
/quotes/zigman/2380150/delayed 315 +6 1.87%
Asia Dow
/quotes/zigman/6959860/realtime 2,464 +10 0.42%
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 1.13 0.00 0.09%
Yen
/quotes/zigman/16008150/realtime/sampled 113.47 +0.12 0.10%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 +0.00 0.02%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 +0.00 0.10%
DXY Index
/quotes/zigman/1652083/delayed 95.82 -0.23 0.24%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.93 +0.04 0.05%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.67 0.00 0.00%
German 10y
/quotes/zigman/15866409/realtime 0.24 0.00 0.00%
Italy 10yr
/quotes/zigman/15866497/realtime 1.65 0.00 0.00%
Spain 10yr
/quotes/zigman/15866444/realtime 1.72 0.00 0.00%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.42 0.00 0.00%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 0.00 0.00%
Crude Oil
/quotes/zigman/2260836/delayed 27 0 0.15%
Gold
/quotes/zigman/33772884/delayed 1,199 +4 0.34%
Corn
/quotes/zigman/25518691/delayed 360 -1 0.21%
DJIA F
/quotes/zigman/48241424/delayed 15,828 -38 0.24%
S&P F
/quotes/zigman/43106711/delayed 1,842 -4 0.24%
Silver
/quotes/zigman/32655632/delayed 15 +0 0.18%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 101.00 1.46 1.47%
AAPL /quotes/zigman/68270/composite 94.27 -0.72 -0.76%
GOOG /quotes/zigman/59527964/composite 684.12 6.01 0.89%
BAC /quotes/zigman/190927/composite 11.98 -0.22 -1.80%
C /quotes/zigman/5065548/composite 37.41 -0.10 -0.27%
F /quotes/zigman/264304/composite 11.34 -0.01 -0.09%
T /quotes/zigman/398198/composite 36.43 -0.22 -0.60%
BP /quotes/zigman/247026/composite 28.04 -0.31 -1.09%
GE /quotes/zigman/227468/composite 28.30 0.02 0.07%
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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 15.20% 15.26% 15.27%
Reward 15.25% 15.28% 15.14%
Instant Approval 18.02% 18.21% 18.00%
Bad Credit 22.56% 22.88% 22.73%
Source:CreditCards.com

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