Wednesday, July 18, 2012
Food Prices To Rise
Corn Futures prices have been trending upward these last few months but have picked up even more steam in June-July closing today at $7.8425 a bushel. Soybeans and Oats have also increased in price and closed higher today. The Midwest drought has cleaned out crops in fields and can be expected to cause food prices to increase later this year and into 2013. Oil prices have also spiked and if they continue this way they will only add to expensive food prices throughout the year. Some investors believe this will jump start inflation along with QE3 if it is injected this year or the following. During the early 1980's we had a double dip recession which was followed by some heavy inflation. Investors ran for their lives while they could and took refuge in real estate before their dollars could be eaten alive. Whether we endure heavy inflation or not we can still prepare ahead of time by keeping some money in liquid form and looking for other safe havens such as gold and stocks.