Turkey Prices Hit Record Before Thanksgiving on Feed Costs

[Joanne98]

Source: Bloomberg

Americans will be paying more for their Thanksgiving turkeys this month after rising feed costs led to reduced output in the U.S.

U.S. wholesale, frozen turkeys jumped to $1.09 a pound on average yesterday, the highest price ever and up 28 percent from a year earlier, according to Russell Whitman, the vice president of the poultry division at commodity researcher Urner Barry in Toms River, New Jersey.

At the end of September, stockpiles of turkey meat slid 23 percent from a year earlier, government data show. Production will decline 1.3 percent this year to 5.514 billion pounds (2.5 million metric tons), the U.S. Department of Agriculture said on Nov. 9. Before today, the price of corn, which makes up about 70 percent of turkey feed, was up 47 percent in the past year.

“The fundamental reason why you’re seeing record-high turkey prices is the fact we’re seeing record-high costs of raising turkeys,” said Tom Elam, president of FarmEcon LLC, an agriculture and food-industry consultant in Carmel, Indiana. “When both stocks are down and production is down, then you get a double hit on the amount available to be consumed.”



Read more: http://www.bloomberg.com/news/2010-11-12/turkey-jumps-to-record-before-thanksgiving-urner-barry-says.html

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Bloomberg didn't really explain that right.

IT'S THE SPECULATORS STUPID!

The SAME people who drove up oil to 147.00 dollars a barrel are now driving up commodities.

THERE IS NO GRAIN SHORTAGE!

Just a POLITICAL COURAGE SHORTAGE!

Happy hedgefund Thanksgiving!

[no_hypocrisy]

1. Wish that the "grains" were GM corn.

[madrchsod]

2. the shortage of corn this year is real.

corn yields are down 5-15%a cross the corn belt this year and last years surplus was bought by ethanol producers.
there is no carry over to make up the difference.

expect more of this in the future because climate change and urbanization is effecting our grain production.

[Kali]

3. 39 cents on store brand (w/ $25 purchase)

Safeway, southern AZ

[madville]

4. Store Brand here is $.69 a pound

ButterBalls are $.99 a pound as of yesterday. Ethanol has provided a good excuse to drive up the price of corn, I still buy gas when I can at the few ethanol-free gas stations/marinas left, get better gas mileage.

[pitohui]

6. not 69 cents a pound here by any means

turkeys are high in my area, i'm thinking of just going w. a small cornish hen this year

[Tippy]

5. K&R for this TRUE statement IT'S THE SPECULATORS STUPID!

[Petrushka]

7. Record highs?? Locally, you can buy a turkey for as low as 19 cents a pound --->

http://www.carnivalfoodsohio.com/index_lancaster.html

http://greatlakes.inserts2online.com/customer_Frame.jsp?divID=016&drpStoreID=00861

[sally cat]

8. Just picked up a 15lb Safeway turkey for $5.99!

[grilled onions]

9. Look For Deals or Substitute

Even a large roasting chicken can make do if one isn't too fussy. Start on line and look for the "sales papers" in your area. No reason to waste gas for the first search. A good time to buy one for the NEXT holiday is right after Thanksgiving. Silly little things like marshmallows were a buy in July when they pushed them for camping so I often buy out of season for this reason. Why give them any more $$$ then you have to. It's a food war and we can't afford to lose.

[CountAllVotes]

10. year before last I did just that

One of the local grocery stores sells organic chickens/turkeys. I went there the day after Thanksgiving and they were marked down 1/2++ price. I bought 4 of them which filled my freezer.

Said turkey lasted well through the winter into the early spring.

It was worth the drive into town to pick these up and I plan to do the same thing again this year.

I rather doubt I'll buy a turkey before Thanksgiving; I'll wait until afterwards! :D

:dem:

[sally cat]

11. They are so cheap right now, at both Safeway and King Soopers/Kroger. Lowest I've ever seen.

[CountAllVotes]

17. hmmm ....

I'll have to go out and do some looking/shopping around! Thanks for letting me know! :D

:kick:

[somone]

12. Hedge Funds: "Let them eat Spam"

Hey, it's the food of cruise ships

[3waygeek]

13. The real reason turkey is so expensive...

so many of them were elected to Congress last week, taking them off the Thanksgiving table.

[Petrushka]

16. Thanks for the giggle!

:thumbsup:

[gvstn]

14. Wholesale price may be high

But the stores around PA are running some of the best specials I have seen in years. Almost everyone has store brand for 39 cents a pound with a very minimal purchase.

[jmowreader]

19. Turkeys are a loss leader at Thanksgiving

Another factor they're not mentioning: increased consumption of turkey. Twenty or thirty years ago you simply didn't consider turkey a regular part of a varied diet since there were two ways to get them: whole and in turkey roll. Now they've got everything in the world with turkey in it, and they have deemphasized the sale of whole birds. (Which makes sense because you make your money in the turkey business on processed turkeys--lunch meat, ham and so on.)

[bemildred]

15. Oh, I thought this was about the election. nt

[Tesha]

18. But remember: There's *NO* inflation, so don't expect your salaries to rise. (NT)