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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: bond_bubble who wrote (74029)11/14/2006 1:34:57 AM
From: bond_bubble  Read Replies (2) of 110194
 
Food Inflation (Bernanke might pretend Core is what matters, but minimum wage increase, ethanol are all setting up for one humongous inflation rally. BTW, if more corn are going to be produced, doesnt that mean more fertilizer has to be produced? Which means more demand for coal, natural gas?):

biz.yahoo.com

"I believe the American consumer is going to have to pay more for protein. We are at new levels on corn that are not likely going to be retrenching back to '06 levels," Bond said in a conference call with analysts.

Bond said meat producers, processors and retailers will have to pass the higher grain price on to consumers because they cannot absorb it in their profit margins.

Bond did not provide more details but suggested the higher consumer prices could come when meat demand typically increases during the spring and summer.

"Quite frankly the American consumer is making a choice here. This is either corn for feed or corn for fuel, that's what's causing this," Bond said.
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