Americans can expect to pay more for groceries due to high commodity prices driven by this year’s drought, but food prices likely won’t hit their peak for a few months, said ISU grain market and agricultural experts this week.
Corn prices have soared throughout the summer due to the historic drought that has withered much of the nation’s prime farmland, which has driven up feed costs for livestock and poultry producers. Those high prices will be passed onto consumers in the form of increased costs at the grocery store, but it will take several months for those increases to show up on store shelves, said Chad Hart, an ISU Extension and Outreach grain markets specialist and associate professor of economics.
“Today’s commodity prices won’t show up in food prices until six to nine months from now usually,” Hart said. “It takes time for the high corn and soybean prices that we see today to interact with what we pay at the grocery store. The food prices that we see right now are reflecting commodity prices from a few months ago.”