Meat, poultry, dairy up slightly
He said consumers should expect to see a modest price increase in meat, poultry and dairy products in 2011, as well as an increase in grain prices due to temporarily tighter grain supplies.
“We’re seeing commodity price increases across the board, but are looking at a situation relating to U.S. stocks of wheat, corn and soybeans,” said Dr. Mark Welch, an AgriLife Extension economist at Texas A&M University in College Station who specializes in grain marketing.
Welch said quantities of these grain commodities were all reduced in the recent Supply and Demand Estimates released by the USDA.
“We already expected a further reduction in the estimate of the U.S. corn supply, but the cut in the soybean estimate was a surprise,” he said.
He said, however, that the worldwide supply of these grains is in good shape with carry-over stocks above their 20-year average, but there is a “pipeline” problem affecting their short-term supply in the U.S.