Economic Signs Suggest Lower Prices At Grocery Stores, Too, Not Just Gas Stations

The most visible drops in commodity prices – oil and gasoline – are not the only ones that could have an impact on consumers in the near future. Farmers and miners are keenly aware that prices of copper, iron ore and corn are way down, along with soybeans, tin, sugar, wheat and cotton. So when will these price drops begin to help consumers? It’s difficult to predict because lower commodity prices are rarely passed on quickly to consumers. Producers concerned about volatility want to be sure cheaper raw material prices remain low. But there is reason for grocery shopper optimism, perhaps later this year. Farmers are experiencing bumper crops and surpluses; there’s plenty of cheap feed for livestock; farmer energy costs are lower; food imports are cheaper; and there’s reduced foreign competition for food.