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Below is a brief excerpt from complimentary research note written by our Consumer Staples analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email sales@hedgeye.com |
In America, sweet corn is a common menu item in the summer and a staple of BBQs and 4th of July celebrations.
Sweet corn prices are elevated, and volumes are well below last year. Since the middle of May, shipping point prices are 130% higher, as seen in the following chart.
US corn prices, on the other hand, have been flat over the same period. Sweet corn eaten on the cob is a different type than the corn used in corn flakes, animal feed, and ethanol.
The former is harvested in the summer and is juicy while the latter is harvested in the fall and is dry like the colorful corn seen in Thanksgiving decorations. Popcorn corn is another type, but now I digress.
The produce markets have seen rising shipping point prices in recent weeks, which has to be in part related to the USDA Farmers to Families Food Box program. The program was authorized to spend up to $3B to address pandemic related food insecurity while also providing markets for American grown food.
The USDA has awarded $2.4B so far for food boxes consisting of produce, dairy, and meat. More than 20M food boxes have been distributed so far.
