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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Jim S who wrote (38468)	8/6/1999 10:34:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 116791

Jim, Good point on the raw material costs. What I believe has been happening, and I think the data would likely back me up, is that cereal/break manufacturers seek to maintain stable prices on the shelves as much as possible to avoid losing customer market share. So when prices for commodities are down, they just suck up that difference as additional profit margin. But their margins get hurt when the commodity prices go up. Now with pork and beef, it another story since grain is a major component of the cost of meat production. I'm still watching for news of smaller hog herds as non-profitable smaller farms are slaughtered and that production consolidated into the larger corporate farms. Just like removing production capacity of smaller gold miners from the system by closing them down, works the same way with hogs and cattle. Prices later usually spike up higher. Regards, Ron