Consumption disruption in 2019?
The U.S. consumer has been a significant contributor to domestic economic growth in 2018. Will consumer consumption be hit by inflation in 2019?
Livestock and dairy farmers across northern Europe are paying soaring prices for straw used in food and bedding for cattle, as hot, dry weather takes a toll on regional crops, reports Reuters.
The increased straw costs put further pressure on farmers already facing one of the toughest summers on record. Many farmers have had to supplement hay purchases because normal grazing grass has not grown.
“We are lacking an enormous amount of straw, both for feed and bedding. There are regions in which straw is already more expensive than grain,” said Peter Levsen Johannsen, CEO of the chamber of agriculture in Schleswig-Holstein.
Wheat straw prices have nearly tripled in certain markets, which could have a rippling effect on lost meat production revenue due to the grain scarcity. Analysts said rising input costs resulting from reduced grain crops could lead to higher store prices. However, retailers are more willing to raise prices on some products than others. (Source: Reuters)
Articles are chosen for summary in this Market Intelligence blog based on newsworthiness in conjunction with The Infinite Loop themes. Any opinions and views expressed in the articles are generally those of the underlying author from the source listed, are not necessarily current as of the date of this blog, may change as market or other conditions change, and may differ from views expressed by Ivy Investment Management Company and its associates or affiliates. Actual investments or investment decisions made by Ivy Investment Management Company and its affiliates will not necessarily reflect the views expressed in the articles. These articles are distributed for educational purposes only and are not investment advice or a recommendation to purchase, sell or hold any specific security mentioned in the article or to engage in any investment strategy. Investment decisions should always be made based on each investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Securities discussed may not be suitable for all investors.