September 14, 2007

Higher Grain Prices

Another article concerning biofuel plants causing increases in the demand for grain which causes supply to be tight which causes the price to raise. High costs for grain means high costs for feed which means high costs for meat.
Peter Sorg, president of Ossian Packing Co., said trying to determine how high corn prices will affect other industries is “a shot in the dark.”

He said the price of pork has actually gone down and markets are not following a pattern.

“We’ve been able to hold our prices steady,” he said. “But everybody is very uneasy.”

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