Is the rising price of corn forcing up the price of food? Despite the measured tones (and graph) in my previous post (Is the price of corn too low?),the price of bagels in New York seems to be more closely tied to the price of a bushel of wheat than I had previously imagined, at least according to the Bridge and Tunnel Club blog, and the New York Metro . I'm guessing that wheat and corn can be interchanged quite easily in markets like animal feed and that the demand for corn is pushing up the price of wheat as a substitute...
Of course that blog has the advantage over my earlier data source that it was written more recently and confines itself to the raw material. .
It is possible that New York's bagel-eating lovers are being gulled by quick-witted, sharp-suited bagel-vendors with an eye for a fast buck, but maybe they're cutting their own throats (and taking bagels out of the mouths of their own children at this price).
Maybe the punter is prepared to take the price rise if they're told its because the visible contents of the product have gone up in price rather than the invisible gasoline that's been used to drag the corn to the mill and the flour to the bakery and from there to the vendor on the corner. But the contention that wheat is $14.22 /bushel is a bit rich, March delivery wheat is currently at around $9.27.