{"id":188896,"date":"2023-04-19T13:15:00","date_gmt":"2023-04-19T17:15:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=188896"},"modified":"2023-05-04T11:21:52","modified_gmt":"2023-05-04T15:21:52","slug":"eyepopping-corn-prices-fueling-food-inflation","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/","title":{"rendered":"Eyepopping Corn Prices &#8211; Fueling Food Inflation"},"content":{"rendered":"\n<p>Sean McGovern, vice president of research at McAlinden Research Partners, and Jeff Praissman, IBKR\u2019s senior trading education specialist, join host Steven Levine for a deep discussion about today\u2019s elevated corn prices, their impact on producer and consumer costs, as well as ahead of key beverage company earnings. What can traders and investors learn about China\u2019s role as a global buyer? Will Brazil surpass the U.S. as top crop producer? And what can options traders tell us about companies like Coca-Cola and PepsiCo? All this and more as our agricultural commodity series continues\u2026.&nbsp;<\/p>\n\n\n\n<p><strong>Note<\/strong><em><strong>:<\/strong>\u00a0Any performance figures mentioned in this podcast are as of the date of recording (April 10, 2023).<\/em><\/p>\n\n\n\n<iframe title=\"Eyepopping Corn Prices \u2013 Fueling Food Inflation\" allowtransparency=\"true\" height=\"150\" width=\"100%\" style=\"border: none; min-width: min(100%, 430px);\" scrolling=\"no\" data-name=\"pb-iframe-player\" src=\"https:\/\/www.podbean.com\/player-v2\/?i=i7fk3-13fc52f-pb&#038;from=pb6admin&#038;share=1&#038;download=1&#038;rtl=0&#038;fonts=Arial&#038;skin=1b1b1b&#038;font-color=ffffff&#038;logo_link=episode_page&#038;btn-skin=c73a3a\"><\/iframe>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-summary-ibkr-podcasts-ep-71\">Summary \u2013 IBKR Podcasts Ep. 71<\/h2>\n\n\n\n<p><em>The following is a summary of a live audio recording and may contain errors in spelling or grammar. Although IBKR has edited for clarity no material changes have been made<\/em>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>Hello, and welcome to IBKR Podcasts. I&#8217;m Steven Levine, senior market analyst at Interactive Brokers. I&#8217;m your host for today&#8217;s program. Sean McGovern is back with us for our ongoing series on agricultural commodities. He&#8217;s vice president of research at <a href=\"https:\/\/www.mcalindenresearchpartners.com\/about-mrp\/?gclid=Cj0KCQiAic6eBhCoARIsANlox855rTJsC-LJ6zxBdUowaspfCIgGyCS4a6cURt0miazzI51jy1Aq20gaAmihEALw_wcB#our-process\">McAlinden Research Partners<\/a>. They&#8217;re a terrific independent investment strategy group that focuses on identifying alpha-generating investment themes, and they have <a href=\"\/campus\/contributors-categories\/mcalinden-research-partners\/\">a lot of commentary<\/a> on our <a href=\"\/campus\/category\/traders-insight\/\">Traders\u2019 Insight<\/a> platform. So, it&#8217;s great to have you back with us, Sean!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>Thanks, Steven. Great to be here.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>Yeah, it&#8217;s great to have you. Jeff Praissman, IBKR\u2019s senior trading education specialist \u2013 he&#8217;s also here with us. How are you, Jeff?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Jeff Praissman<\/strong><\/h3>\n\n\n\n<p>I&#8217;m doing great, Steve. Thanks for having me, and it&#8217;s great to see you, again, Sean.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>Same to you. Same to you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>All great, all great, all great. Jeff&#8217;s going to be on our <a href=\"https:\/\/www.interactivebrokers.com\/en\/trading\/tws.php\">Trader Workstation [TWS]<\/a> platform, and he&#8217;s going to be using our tools and his own research to help us out on how corn futures, and certain companies and stocks in the ecosystem of corn-related products, are doing. It&#8217;s a rather large field of players, right? So, we&#8217;re going to try and narrow the scope a bit on that and focus on some of those companies whose products are produced with the corn futures that are trading on the exchange.<\/p>\n\n\n\n<p>So, for this discussion, I thought we&#8217;d changed things up a bit from our previous podcasts. We talked about coffee and wheat futures \u2013 those were podcasts called \u2018<a href=\"\/campus\/podcasts\/ibkr-podcasts\/time-for-a-coffee-break\/\">Time for a Coffee Break?<\/a>\u2019 and \u2018<a href=\"\/campus\/podcasts\/ibkr-podcasts\/the-war-on-wheat-how-much-bread-is-on-the-table\/\">The War on Wheat<\/a>,\u2019 which, if you haven&#8217;t already, Sean&#8217;s given us some great insights on both of those. They&#8217;re now streaming on <a href=\"\/campus\/category\/ibkr-podcasts\/\">IBKR Podcasts<\/a> and Spotify and Apple Music \u2026 and wherever you listen to your podcasts. And I thought we\u2019d just dive right in on this topic\u2026.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Corn \u2013 What is it Used For? (Almost) Absolutely Everything<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>As I understand it, <a href=\"https:\/\/www2.education.uiowa.edu\/html\/eportfolio\/tep\/07es102folder\/miniweb\/usesofcorn.htm\">corn is used for a wide variety of purposes<\/a>. It&#8217;s in several different business sectors. It&#8217;s got a huge involvement, obviously, with consumer staples but also industrials and energy and pharma \u2026 from corn sweeteners in foods like <a href=\"file:\/\/\/C:\/Users\/StevenLevine\/Downloads\/PM2061.pdf\">high fructose corn syrup<\/a> to biofuels like ethanol to all sorts of different industrial uses, and I had no idea that corn was involved in, say, the production of envelopes and sandpaper and batteries\u2026. We&#8217;re not going to be focusing too much on that, but I thought that was really interesting, and it also is involved in producing drugs like antibiotics.<\/p>\n\n\n\n<p>First, Sean, what are we trading on the exchange when we trade in corn futures? And what kind of products are these mainly used to produce?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>Right. Well, the contract we&#8217;re talking about when we refer to the corn futures, it&#8217;s going to be the <a href=\"https:\/\/www.cmegroup.com\/markets\/agriculture\/grains\/corn.html\">CME Group&#8217;s contract<\/a>. Now, the name of the contract is typically quoted as C-B-O-T, or CBOT, you&#8217;ll usually hear people say. That&#8217;s for the Chicago Board of Trade. But CBOT actually merged with CME back in 2007, so, essentially, CBOT is now just one of the four exchanges under the CME Group. The corn is going to be priced in bushels and have five delivery months throughout the year. It&#8217;s going to be September, December, March, May, and July. Corn futures are the most liquid and active market in agricultural commodities, and that&#8217;s not only because corn is so widely used in human cereals and other foodstuffs, it&#8217;s also a major component in animal feed \u2013 that&#8217;s overlooked sometimes, but it&#8217;s really critical, because it&#8217;s going to impact the prices we see for beef, chicken, pork \u2026 all the meat at the grocery store that isn&#8217;t grass-fed. If higher costs are going into feeding the livestock, there&#8217;s probably going to be a need to raise the final prices of the meat coming out of those animals. The USDA&#8217;s data \u2013 that shows about 30% of the domestic corn usage in the countries going toward feeding the livestock over here. And one more thing is biofuels, <a href=\"https:\/\/www.ncga.com\/key-issues\/current-priorities\/ethanol\">particularly ethanol<\/a>. You probably see that the gas station \u2013<\/p>\n\n\n\n<p>It will usually say like 10% ethanol or something on the gauges, and that&#8217;s going to make up another significant portion of corn demand \u2018cause that&#8217;s mixed in with gasoline. Air quality regulations, or renewable \u2026 renewable fuel standards \u2026 that&#8217;s going to require about 10% of ethanol to be used in almost all of the gas in the United States.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Corn \u2013 At What Cost?<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>Are the corn futures prices reflective of, perhaps, producer prices?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>Oh, yeah, absolutely. Yeah, yeah. I mean, I follow the <a href=\"https:\/\/fred.stlouisfed.org\/series\/WPU012202\">Producer Price Index (PPI)<\/a>, and I discovered one recently that was kind of interesting when I heard that we&#8217;re going to be doing this topic, and it&#8217;s a series specifically for <a href=\"https:\/\/fred.stlouisfed.org\/series\/WPU02540107\">corn sweeteners<\/a>. And, so, that&#8217;s going to be anything corn syrup, sugar, oil \u2026 anything produced from <a href=\"https:\/\/en.wikipedia.org\/wiki\/Wet-milling\">wet milling<\/a> of corn. That index showed a year-over-year increase of 27.4% in February, and that was almost a 29-year high and suggests we could see a whole lot of inflation still in the pipeline for like soda, candies \u2026 anything incorporating corn-based sweeteners.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>We&#8217;ll be getting to that bit later, but I have also noticed high fructose corn syrup \u2026 corn sweeteners. Yeah, just off the charts. I mean, the Fed has [Federal Reserve Bank of St. Louis] got some indexes that I&#8217;ve been looking at, and soda \u2026 soda bottles \u2026 two-liter soda \u2026 just through the roof, it seems. It&#8217;s incredible. But Jeff, can you tell us where are these corn futures trading now on the continuous contract on TWS?<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"624\" height=\"351\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/Picture1.jpg\" alt=\"\" class=\"wp-image-188907 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/Picture1.jpg 624w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/Picture1-300x169.jpg 300w\" data-sizes=\"(max-width: 624px) 100vw, 624px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 624px; aspect-ratio: 624\/351;\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Jeff Praissman<\/strong><\/h3>\n\n\n\n<p>Sure. So, right now, they&#8217;re trading around $650, and year-to-date, they&#8217;re down about 4% or so given the high was kind of mid- \u2026 early January, a little bit north of $680. But if you take the trailing 12 months, it&#8217;s down about 15%. And back in May 2022, they were a little bit north of $800, and if you take a little bit further back for the last five years, it&#8217;s actually up 63%. But with that being said, they seem to hover around $400 for quite a while between 2018 and mid-2020 before they really started exploding at the end of 2020. And beginning 2021, going north of $700 \u2026 and then in the beginning of 2022, going north of $800 for a little bit.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"624\" height=\"351\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/picture2-1.jpg\" alt=\"\" class=\"wp-image-188909 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/picture2-1.jpg 624w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/picture2-1-300x169.jpg 300w\" data-sizes=\"(max-width: 624px) 100vw, 624px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 624px; aspect-ratio: 624\/351;\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>I&#8217;ve seen them plateau for a little while. They look like they&#8217;re headed a bit south at this point, but I mean, overall, compared to that 2020 low, prices have been really elevated on corn to the extent \u2026 it&#8217;s different than wheat, for example. I mean, corn prices still seem to be hovering fairly high. I understand there&#8217;s been some bans on corn exports. I don&#8217;t know if that has anything to do with it. There was a <a href=\"https:\/\/thedocs.worldbank.org\/en\/doc\/40ebbf38f5a6b68bfc11e5273e1405d4-0090012022\/related\/Food-Security-Update-LXXX-March-09-2023.pdf\">World Bank report from March<\/a> that these bans covered a little over 5% of shipments \u2026 [they] accounted for more than three-quarters of [the] over 15% increase in corn prices. Sean, what can you tell us about these bans? I mean, I know Russia had also a ban on wheat in the first half of 2022, but are these bans affecting, say, the prices for corn futures? Are they affecting everyday prices for consumers? Producers? What can you tell us about this?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>There&#8217;s been several countries enacting export bans for all kinds of food supplies over the last year \u2013 that&#8217;s going to include corn and other grains. We&#8217;ve seen all kinds of bans \u2026 in India, Serbia, Egypt \u2026 countries in many different regions around the world. The bans are coming out of an understandable need to shore-up the food supplies in their own countries, but that ends up driving food inflation in other places. At this point, most of the countries with restrictions still in place are typically smaller exporters of crops, and they&#8217;re coming up short because of the large exporters like Russia and Ukraine not getting their usual share of supplies out to the world. So, it&#8217;s kind of a domino effect, but when it comes to corn, specifically, we&#8217;re seeing or monitoring ongoing bans in Russia, which just enacted a partial ban on grain exports last month and that will continue through at least June 30th. We talked in February about the \u2018war on wheat\u2019 \u2013 the war on the wheat supplies that has continued on since the start of the war in Ukraine. Similar to wheat, Russia and Ukraine also export a significant amount of corn supplies to the world. And that&#8217;s going to be wrapped-up in that <a href=\"https:\/\/www.un.org\/en\/black-sea-grain-initiative\">Black Sea Grain Deals<\/a> that we&#8217;ve talked about. They do end up being <a href=\"https:\/\/www.reuters.com\/markets\/commodities\/black-sea-grain-deal-extended-turkey-ukraine-say-2023-03-18\/\">extended in March<\/a>, but only for 60 days, as opposed to the 120-day extension that Ukraine and other partners in the agreement were seeking. That sort of lines up with our expectation that Russia is like quiet quitting on the deal, as you might say. That is, they&#8217;re not leaving outright, at least not yet, but also not fully holding up their end of the bargain. And that looming uncertainty around the deal, which seems pretty tenuous at this point, is going to create risk in wheat and corn markets going forward.<\/p>\n\n\n\n<p>Just to talk a little bit more about the prices Jeff was just quoting a little bit earlier is \u2013 a cursory look at corn prices going back to this time around last year or so. That would show corn prices have fallen significantly, down from the $750-$780 area to around $650 or so today. But if you extend your view out a little bit further \u2026 around three years \u2026 or almost anytime from 2015 to 2020, you see that corn is still elevated well above those levels, which range between $300 to $450 a bushel. In essence, corn prices have fallen, but it&#8217;s hard to say that they aren&#8217;t still elevated, and that&#8217;s just due to so many different factors that have come into play. We&#8217;ve had severe droughts, war in Europe, supply chain chaos \u2026 and it&#8217;s going to take a while to unwind all that. Even if we saw a serious slowdown in growth that would ease some of this demand-side pressures, people still eat in a recession, people still use gasoline. It seems like supply-side continues to be the real driver [of] what we&#8217;re seeing in corn markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Global Supply &amp; Demand:<\/strong><\/h2>\n\n\n\n<p><strong><em>Brazil Poised to Surpass the U.S. as the #1 Producer<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>China \u2013 An Indicator of Buying Opportunity?<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>I understand China has got some potential increase in demand or healthier demand. I know they had an uptick in <a href=\"https:\/\/farmpolicynews.illinois.edu\/2023\/03\/a-flurry-of-chinese-purchases-of-u-s-corn-as-brazil-seeks-further-ag-trade-opening-with-china\/\">purchases of U.S. corn<\/a>, for example, pretty recently. So, [the] U.S. is \u2013 I understand from <a href=\"https:\/\/www.ers.usda.gov\/topics\/crops\/corn-and-other-feed-grains\/feed-grains-sector-at-a-glance\/\">the USDA<\/a> anyways \u2013 it&#8217;s the world&#8217;s largest producer, consumer, and exporter of corn. So, what can you tell us about our own domestic production? How much of it stays within our borders, how much of it leaves our borders, and what kind of challenges, do you think \u2013 I mean, I understand there are some other countries that have come into the competition fray \u2013 Brazil, Argentina \u2013 and Argentina is perhaps experiencing some challenges with their weather there\u2026.&nbsp; I think that the <a href=\"https:\/\/www.thepoultrysite.com\/news\/2023\/03\/argentina-grains-exchange-cuts-corn-soybean-forecast\">Buenos Aires Grain Exchange had cut its outlook<\/a> on Argentina [corn supply]. But what do you think \u2026 in terms of exports for the U.S.? Is it becoming more and more uncertain, or what do you think?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>The U.S. is a huge consumer of corn, and a lot of that stays here because we produce a lot, too. Up to one-fifth of that is going to go out to the world though. That\u2019s a relatively small share, but for something like 2021 to 2022, that was still north of 62 million metric tons, and that&#8217;s enough to make the U.S. the top exporter of corn for now. So, yeah, plenty of corn we&#8217;re making \u2026 but a lot of it \u2013 the small share that&#8217;s going out \u2013 is still a huge, huge amount. And I&#8217;m glad you mentioned South America. You mentioned Argentina, but Brazil is one of the big places that we&#8217;re watching, and we&#8217;ve been monitoring it closely since it&#8217;s right on the U.S.&#8217;s tail to take the crown for corn exports this year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>Oh, really?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>They could surpass us this year \u2026 sometime within the next decade, that&#8217;s probably going to happen \u2026 but the latest USDA numbers expect Brazil to achieve a second consecutive year of record corn shipments, and that&#8217;s going to be about 50 million metric tons \u2026 to all different destinations around the world. That&#8217;s like a sevenfold increase over the past 15 years. The U.S. is only going to do about 47 million metric tons of corn this year, and you could tell that&#8217;s a significant drop-off from what we saw in the 2021 to 2022 period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>Why is Brazil surpassing us, and why are we producing less?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>Well, that&#8217;s a great question. So, the <a href=\"https:\/\/farmdocdaily.illinois.edu\/2023\/03\/will-brazil-emerges-as-the-number-one-corn-exporting-nation.html\">University of Illinois<\/a> has great data on this, and the acreage in Brazil has actually risen 72% over the last 20 years. That&#8217;s just the acreage for corn. And the U.S. \u2013 you&#8217;ve really only seen about 12% growth, and going out to 2031, the USDA says Brazil might have up to 49 million acres of land it could still use to expand its crop production over that period. So, they&#8217;re going to catch us. It&#8217;s really just a matter of time. And you also mentioned China. That&#8217;s the engine behind the growth. They are taking in massive amounts of Brazilian corn these days, and we&#8217;d probably be expecting Argentina, like you mentioned, to be joining in on this, but they have had the problems with their weather, and the exports out of Argentina are probably going to be 28 or 29 million tons in this marketing year. If that does come true, that&#8217;ll be the lowest since 2017 to 2018. We&#8217;re watching the weather right now in Brazil, specifically, since their exports slowed down pretty significantly in March. That some warm weather came in \u2026 warm and dry weather. And while that&#8217;s not ideal for corn crops that are already in the ground, they&#8217;re delayed. They had a lot of delayed plantings this year. What you have to understand about Brazil is they have \u2026 they plant corn all year round, and they have three different harvests, and right now they&#8217;re in the second. It&#8217;s the second harvest is called \u2018safrinha,\u2019 and it that just means \u2018off-season,\u2019 but really it&#8217;s just the second harvest, and they sow that in fields where soybeans have already been harvested, which is why it&#8217;s the second season, and that it was really late this year. It&#8217;s actually the biggest driver of Brazil&#8217;s crops. So, I think it&#8217;s up to 70 to 75% of national production comes out of this safrinha. The issue is, like I said, it&#8217;s time-sensitive, and if you plant it too late, which seems to be what happened this year, it could be exposed to frost and other bad weather that can really mess up corn. Going into April, which is kind of the wet month for this corn in the Midwestern part of Brazil, we&#8217;re going to be watching that, and that precipitation could have a really big outsized role in determining the trajectory of corn futures in the year ahead, because Brazil is just such a huge producer right now.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>What does <a href=\"https:\/\/www.usda.gov\/oce\/commodity\/wasde\">WASDE<\/a> say about this? What does WASDE\u2019s outlook look like?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>Last month, they did expect the U.S. exports to be lower, and that&#8217;s actually what came out. And it was 75 million bushels less than what most people were expecting. I don&#8217;t want to talk too much about WASDE, because we actually won&#8217;t get those <a href=\"https:\/\/www.usda.gov\/oce\/commodity\/wasde\/wasde0423.pdf\">new numbers<\/a> till tomorrow. Perfect timing, right. But there&#8217;s some things you can watch for. That&#8217;s what I was going to say is you can watch for some really specific things in this new WASDE report. Some of the USDA numbers outside of the WASDE last week showed that corn stalks at the start of March were about 7.4 billion bushels. That&#8217;s down 5%, or about 180 million bushels from the same time a year ago. And we can continue to watch how the exports grow, and how the production is, like what the plantings look like \u2026 but there was one other kind of series that you can also glean something off of when it comes to WASDE, and that was going back to China. We mentioned earlier that they&#8217;re having this buying spree in Brazil. They&#8217;ve really been buying everywhere, and it&#8217;s not just corn. In fact, they&#8217;ve been stocking up for some time, and WASDE has some numbers on this. So, right now, China is holding about 70% of the world&#8217;s total excess corn, more than half of the excess global wheat, and around one-third of the global soybeans. China likes to buy when they see that they&#8217;re getting a deal, that things look relatively cheap, and if they&#8217;re buying right now, that could mean their government sees prices potentially going up in the near future, and they&#8217;re trying to vacuum up whatever they can get right now while things are staying cheap.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>So, they&#8217;re kind of an indicator in a way? That&#8217;s very interesting.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>Exactly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The High Cost of Corn Sweeteners:<\/strong><\/h2>\n\n\n\n<p><strong><em>Beverage Company Earnings on Tap (KO, PEP, KDP)<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>Related Stocks, Options, and Consumer Prices<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>And we touched upon this earlier \u2013 corn is involved in a lot of different business sectors, a lot of different areas, a lot of different areas of production. But corn sweeteners \u2013 we&#8217;re sticking with our focus on food products and food inflation \u2013 and we touched on this earlier: <a href=\"https:\/\/www.healthline.com\/nutrition\/foods-with-high-fructose-corn-syrup#10.-Bread-and-crackers\">high fructose corn syrup<\/a>. I noticed this, and that\u2019s a huge ingredient in a lot of different kinds of foods.\u2026 If we look at breakfast foods, for example, it&#8217;s huge ingredient in lots of types of jam, or maple syrup \u2026 certain juices that are supposed to be fruit juices, but they pass as fruit juices, I suppose \u2026 but also in soft drinks and in soda and I see high fructose corn syrup up from, let&#8217;s say, just last year \u2013 it&#8217;s over 40, about 45 1\/2% higher in price. I mean, it&#8217;s crazy expensive these days, it seems. So, I guess I throw this question out there now to everybody, whether or not you&#8217;re buying anything with high fructose corn syrup and have noticed any kind of price differences from last year. I don&#8217;t eat anything with sugar. I don&#8217;t know, but I&#8217;ll throw that out to you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>I&#8217;m glad you took the opportunity to tell us just how great your diet choices are, Steven. You know, you&#8217;re the healthiest one here, as we know, every episode we find out something new about how healthy Steven is.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>Well, it&#8217;s a 180-degree reversal from the way it used to be, because all during the pandemic, I could tell you whether or not I was spending more on M&amp;M&#8217;s or Lucky Charms &#8230; and there\u2019s other product placement that doesn&#8217;t belong here\u2026. So, I did drink and eat a lot of sugary things, and I gained a lot of weight and so, you know, I had to do something about that. So, I am not eating any sugar anymore. That&#8217;s it. No more. There could be, obviously, you know, natural sugars \u2026 in pineapple et cetera. But anyway, I&#8217;m leaving it to you guys \u2026 whether or not you all \u2013<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>You&#8217;ve just got sprouted grain bread and no corn syrup \u2026. sounds good.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>I&#8217;m listening to the dietary guidance in my mind, you know, from my days in elementary school. Anyways, please&#8230;.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Jeff Praissman<\/strong><\/h3>\n\n\n\n<p>Considering I&#8217;ve ate about 800 jelly beans over the last three days, I don&#8217;t think I&#8217;m quite as healthy as Steve. One thing I have noticed though is \u2013 I don&#8217;t know whether or not the prices have risen or not for say, soda \u2013 but the one thing I really noticed at the supermarket is it seemed like in the past, every time you went, there was a sale in soda. So, it was buy, you know, one 2-liter, get the other one for 50% off, or buy a 12-pack of, say, Coca-Cola, and get the second one for 50% off. At least from what I&#8217;m observing, it seems like there&#8217;s less and less of those sales going on in this in that aisle. So, whether or not they&#8217;re raising prices directly, or they&#8217;re just not discounting anymore, it seems like, certainly overall, it&#8217;s more expensive to eat unhealthy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>Yes, see \u2013 so, not only is it bad for you, but you&#8217;re also spending more money on that. That&#8217;s not right. What do you think, Sean?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>As I mentioned at the top, I was really shocked by the producer price increases in the corn syrup \u2026 anything that&#8217;s coming from corn is just going to be up. And especially if you look at that over a period of just more than just year-over-year \u2026 if you look at two years or three years \u2026. you know, it might be slowing down a little bit now \u2018cause we have seen some disinflation in the economy now \u2026 not seeing really any deflation by any means, but I would expect that corn syrup, or anything that it goes into, is going to follow the broader trend of food inflation, which we&#8217;ve seen has been persistently resilient.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>It&#8217;s very interesting. The Saint Louis Fed has a <a href=\"https:\/\/fred.stlouisfed.org\/series\/APU0000FN1101\">price chart of two-liter soft drinks<\/a>. It shows a spike of over 38% in February from the prior year. And if you look at the latest earnings from, say, Coca-Cola \u2026 PepsiCo \u2026 there&#8217;s still a lot of demand, it seems, even though these prices for these products have been rising. Coke had an organic revenue growth of 15% in the <a href=\"https:\/\/www.fool.com\/earnings\/call-transcripts\/2023\/02\/14\/coca-cola-ko-q4-2022-earnings-call-transcript\/\">fourth-quarter<\/a>; full-year [2022], it was up 16%. And, so, I&#8217;m sure these higher commodity costs, [and] other factors, I&#8217;m sure are eating into its margins \u2026 impacting its cash flow, but, you know, Pepsi is pretty much mirroring that same activity. And we mentioned this also because Coca-Cola does have its <a href=\"https:\/\/investors.coca-colacompany.com\/news-events\/press-releases\/detail\/1080\/the-coca-cola-company-announces-timing-of-first-quarter\">first-quarter earnings coming out on April 24th<\/a>. <a href=\"https:\/\/finance.yahoo.com\/news\/pepsico-pep-outpaces-stock-market-215009642.html#:~:text=PepsiCo%20will%20be%20looking%20to,%2Dyear%20growth%20of%206.2%25.\">PepsiCo on the 25<sup>th<\/sup><\/a>, also <a href=\"https:\/\/investors.keurigdrpepper.com\/2023-04-05-Keurig-Dr-Pepper-to-Report-First-Quarter-2023-Results-and-Host-Conference-Call\">Keurig Dr. Pepper on the 27<sup>th<\/sup><\/a>; so, this is very timely in terms of that kind of discussion. What are you seeing, Jeff? I mean, these stock prices, I think on some of these soft drink companies are also mirroring their activity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Jeff Praissman<\/strong><\/h3>\n\n\n\n<p>The one thing I notice \u2013 and to kind of narrow it down again \u2018cause, you know, corn is in everything \u2013 but just looking at the beverage companies: Coca-Cola, Keurig Dr. Pepper, and PepsiCo \u2013 looking at the call and put volume \u2013 overwhelmingly \u2013 the majority of volume in contracts, as well as notional value, is on the call side of it. So, in other words, more investors and traders are coming in and buying call options versus put options, again not just in contract size, but as well as the notional value of the contracts as well. So, it seems to be signaling that people do believe that these companies will, you know, continue to rise \u2026 as far as the stock price.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"624\" height=\"351\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/Picture3.jpg\" alt=\"\" class=\"wp-image-188910 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/Picture3.jpg 624w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/Picture3-300x169.jpg 300w\" data-sizes=\"(max-width: 624px) 100vw, 624px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 624px; aspect-ratio: 624\/351;\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>So, Sean, do you foresee perhaps these prices just continuing to rise? I know you talked about corn as being something that looks like it&#8217;s got a lot of challenges \u2026 in terms of supply chains et cetera \u2026 but what do you think?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>It&#8217;s doubtful that we really see any relief for inflation and stuff any more than we see gradual disinflation happening throughout the economy, which we have seen, if you look at the various consumer price indices. Any kind of gauges of inflation, we are seeing gradual disinflation, and you want to hit on that word specifically, because that&#8217;s prices are still going up, but by less. That&#8217;s not really getting us anywhere near levels of meaningful deflation. That&#8217;s when prices are actually declining. As we&#8217;ve said, the demand-side risks are certainly there with interest rates as high as they are, and growth appearing to slow down. And now you also have consumer sentiment reversing course after getting back on track for several months. But right now, in the scope of corn products, that \u2026 or any products that utilize corn \u2026 the expectation from the USDA is that the U.S., and the world at large, will use more corn than it produces for the sixth consecutive year. And that&#8217;s going to keep markets tight. In the scope of stocks \u2013 I don&#8217;t have any color on any specific stocks \u2013 but I am remembering something from when we talked about coffee \u2013 that all of these brands, they compete with private label \u2026 every store, they have a \u2018Coke\u2019 or a \u2018Pepsi\u2019 kind of replacement, and because inflation has actually gone up for private labels so strongly, that has pushed people back toward name brands, because the kind of benefit you&#8217;re getting \u2013 you know, the difference in cost \u2013 is actually starting to compress a little bit, and there&#8217;s not as much benefit to buying a private label versus purchasing some kind of premium product. So, if that&#8217;s going away, that could help organic sales of these companies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>Do you think they can move back to sugar-based products as opposed to this high fructose corn syrup? I wonder\u2026.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>Oh, they can. They can. Well, actually, it&#8217;s interesting. This is kind of been going around on the Internet as a little bit of a trend \u2013 is that for Passover, [some] Jewish people, they <a href=\"https:\/\/www.chabad.org\/holidays\/passover\/pesach_cdo\/aid\/4354835\/jewish\/Is-Corn-Kosher-for-Passover.htm#:~:text=Corn%20is%20included%20in%20the,may%20not%20eat%20on%20Passover.\">can&#8217;t eat corn<\/a>. So, they have to have Coca-Cola that uses natural cane sugar. And, you know, most people didn&#8217;t know about this until it became a big fad on the Internet \u2013 is that if you see Coca-Cola at the store, it has like a <a href=\"https:\/\/www.insider.com\/why-do-coke-bottles-have-yellow-caps-2017-4\">yellow cap<\/a>. That means it&#8217;s made with sugar cane, and it&#8217;s kosher for Passover.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>It&#8217;s very interesting. And I haven&#8217;t looked at sugar futures, but I have a feeling that sugar \u2013 the [cost of] production of \u2026 or refinement of \u2026 sugar is probably less than corn at this point. And I wonder, you know, [if] it would be so much more cost effective, perhaps\u2026. I think it was the reverse <a href=\"https:\/\/earthsky.org\/human-world\/a-brief-history-of-high-fructose-corn-syrup\/#:~:text=Farm%20subsidies%20encouraging%20farmers%20to,drink%20companies%20had%20followed%20suit.\">when they first introduced high fructose corn syrup<\/a> \u2013 that it, at the time, was probably less expensive to produce than sugar. But it looks like the roles have reversed a bit?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sean McGovern<\/strong><\/h3>\n\n\n\n<p>Yeah. But I think the problem might come from scaling up cane sugar production as opposed to the cost of scaling up corn syrup on sort of an international \u2026 global level, because that&#8217;s what Coca-Cola and Pepsi and these guys are doing. And I think that&#8217;s probably more similar to \u2026 more driving what we&#8217;re seeing with the popularity of corn syrup.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steven Levine<\/strong><\/h3>\n\n\n\n<p>Very interesting stuff. So, this was great on corn futures! Both of you, thank you so much, again, for taking the time to do this!<\/p>\n\n\n\n<p>I want to let listeners know that you can read more commentary and market analysis at <a href=\"\/campus\/category\/traders-insight\/\">IBKR Traders\u2019 insight<\/a>. It&#8217;s on our newly launched <a href=\"\/campus\/\">IBKR Campus at www.interactivebrokers.com<\/a>. You can keep abreast there about topics we&#8217;ve discussed today. We\u2019ve got a wide range of other news critical to your investment decisions. McAlinden Research Partners has a host of articles on several themes \u2013 from central banks and gold buying to issues involving cybersecurity. You can contact Rob Davis for more details at <a href=\"mailto:rob@mcalindenresearch.com\">rob@mcalindenresearch.com<\/a>. And for a full list of financial educational offerings, visit the IBKR Campus, where, as always, all of our educational material is provided to the public at no cost.<\/p>\n\n\n\n<p>And until next time, I&#8217;m Steven Levine with Interactive Brokers.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p><strong>LEARN MORE<\/strong><\/p>\n\n\n\n<p><strong><br>WHAT\u2019S FOR BREAKFAST \u2013 PODCAST SERIES<\/strong><\/p>\n\n\n\n<p><a href=\"\/campus\/podcasts\/ibkr-podcasts\/time-for-a-coffee-break\/\">Time for a Coffee Break?<\/a><\/p>\n\n\n\n<p><a href=\"\/campus\/podcasts\/ibkr-podcasts\/the-war-on-wheat-how-much-bread-is-on-the-table\/\">The War on Wheat \u2013 How Much Bread Is on the Table?<\/a><\/p>\n\n\n\n<p><strong>IBKR TRADERS\u2019 ACADEMY<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"\/campus\/traders-academy\/futures\/\">Courses On Futures<\/a><ul><li>Introduction to Futures<\/li><\/ul><ul><li>Futures Fundamental Analysis<\/li><\/ul><ul><li>CME Micro WTI Crude Oil Futures<\/li><\/ul><ul><li>Understanding South American Soybean Futures<\/li><\/ul><ul><li>Introduction to Grains and Oilseeds<\/li><\/ul>\n<ul class=\"wp-block-list\">\n<li>Hedging with Grain and Oilseed Futures and Options<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>MORE FROM McALINDEN RESEARCH PARTNERS<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"\/campus\/traders-insight\/securities\/macro\/crispr-closing-in-on-first-us-product-launch-latest-data-shows-treatment-100-effective-after-three-years\/\">CRISPR Closing In On First US Product Launch, Latest Data Shows Treatment 100% Effective After Three Years<\/a> (7\/11\/22)<\/li>\n\n\n\n<li><a href=\"\/campus\/traders-insight\/securities\/macro\/russia-ukraine-tensions-put-global-food-trade-at-risk-mounting-headwinds-face-agriculture-industry\/\">Russia-Ukraine Tensions Put Global Food Trade at Risk, Mounting Headwinds Face Agriculture Industry<\/a> (1\/26\/22)<\/li>\n\n\n\n<li><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Sean McGovern, vice president of research at McAlinden Research Partners, and Jeff Praissman, IBKR\u2019s senior trading education specialist, join host Steven Levine for a deep discussion about today\u2019s elevated corn prices, their impact on producer and consumer costs, as well as ahead of key beverage company earnings. <\/p>\n","protected":false},"author":2,"featured_media":189012,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4,21,5,10842,6,13857,8,9,1031,26,3],"tags":[429,147,251,2892,570,252],"contributors-categories":[13576],"class_list":{"0":"post-188896","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-asia","8":"category-commodities","9":"category-europe-middle-east-africa","10":"category-ibkr-podcasts","11":"category-north-america","12":"category-podcasts","13":"category-region","14":"category-securities","15":"category-south-america","16":"category-text-articles","17":"category-traders-insight","18":"tag-agriculture","19":"tag-commodities","20":"tag-corn","21":"tag-food-prices","22":"tag-inflation","23":"tag-wheat","24":"contributors-categories-interactive-brokers"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Eyepopping Corn Prices &#8211; Fueling Food Inflation<\/title>\n<meta name=\"description\" content=\"Sean McGovern, vice president of research at McAlinden Research Partners, and Jeff Praissman, IBKR\u2019s senior trading education specialist, join host...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/188896\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Eyepopping Corn Prices - Fueling Food Inflation | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"Sean McGovern, vice president of research at McAlinden Research Partners, and Jeff Praissman, IBKR\u2019s senior trading education specialist, join host Steven Levine for a deep discussion about today\u2019s elevated corn prices, their impact on producer and consumer costs, as well as ahead of key beverage company earnings.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus US\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-19T17:15:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-04T15:21:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/pod-20230410-corn-rect.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"563\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Steven Levine\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Steven Levine\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"23 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"NewsArticle\",\n\t            \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/ibkr-podcasts\\\/eyepopping-corn-prices-fueling-food-inflation\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/ibkr-podcasts\\\/eyepopping-corn-prices-fueling-food-inflation\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"Steven Levine\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/f1653cb6c3a16623fb0f6fdce4ec05e1\"\n\t            },\n\t            \"headline\": \"Eyepopping Corn Prices &#8211; Fueling Food Inflation\",\n\t            \"datePublished\": \"2023-04-19T17:15:00+00:00\",\n\t            \"dateModified\": \"2023-05-04T15:21:52+00:00\",\n\t            \"mainEntityOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/ibkr-podcasts\\\/eyepopping-corn-prices-fueling-food-inflation\\\/\"\n\t            },\n\t            \"wordCount\": 5027,\n\t            \"commentCount\": 0,\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/ibkr-podcasts\\\/eyepopping-corn-prices-fueling-food-inflation\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2023\\\/04\\\/pod-20230410-corn-rect.jpg\",\n\t            \"keywords\": [\n\t                \"agriculture\",\n\t                \"commodities\",\n\t                \"corn\",\n\t                \"food prices\",\n\t                \"inflation\",\n\t                \"wheat\"\n\t            ],\n\t            \"articleSection\": [\n\t                \"Asia Pacific\",\n\t                \"Commodities\",\n\t                \"Europe, the Middle East and Africa\",\n\t                \"IBKR Podcasts\",\n\t                \"North America\",\n\t                \"Podcasts\",\n\t                \"Region\",\n\t                \"Securities\",\n\t                \"South America\",\n\t                \"Text Articles\",\n\t                \"Traders' Insight\"\n\t            ],\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"CommentAction\",\n\t                    \"name\": \"Comment\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/ibkr-podcasts\\\/eyepopping-corn-prices-fueling-food-inflation\\\/#respond\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"WebPage\",\n\t            \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/ibkr-podcasts\\\/eyepopping-corn-prices-fueling-food-inflation\\\/\",\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/ibkr-podcasts\\\/eyepopping-corn-prices-fueling-food-inflation\\\/\",\n\t            \"name\": \"Eyepopping Corn Prices - Fueling Food Inflation | IBKR Campus US\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\"\n\t            },\n\t            \"primaryImageOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/ibkr-podcasts\\\/eyepopping-corn-prices-fueling-food-inflation\\\/#primaryimage\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/ibkr-podcasts\\\/eyepopping-corn-prices-fueling-food-inflation\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2023\\\/04\\\/pod-20230410-corn-rect.jpg\",\n\t            \"datePublished\": \"2023-04-19T17:15:00+00:00\",\n\t            \"dateModified\": \"2023-05-04T15:21:52+00:00\",\n\t            \"description\": \"Sean McGovern, vice president of research at McAlinden Research Partners, and Jeff Praissman, IBKR\u2019s senior trading education specialist, join host Steven Levine for a deep discussion about today\u2019s elevated corn prices, their impact on producer and consumer costs, as well as ahead of key beverage company earnings.\",\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"ReadAction\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/ibkr-podcasts\\\/eyepopping-corn-prices-fueling-food-inflation\\\/\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"ImageObject\",\n\t            \"inLanguage\": \"en-US\",\n\t            \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/ibkr-podcasts\\\/eyepopping-corn-prices-fueling-food-inflation\\\/#primaryimage\",\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2023\\\/04\\\/pod-20230410-corn-rect.jpg\",\n\t            \"contentUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2023\\\/04\\\/pod-20230410-corn-rect.jpg\",\n\t            \"width\": 1000,\n\t            \"height\": 563\n\t        },\n\t        {\n\t            \"@type\": \"WebSite\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t            \"name\": \"IBKR Campus US\",\n\t            \"description\": \"Financial Education from Interactive Brokers\",\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"SearchAction\",\n\t                    \"target\": {\n\t                        \"@type\": \"EntryPoint\",\n\t                        \"urlTemplate\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/?s={search_term_string}\"\n\t                    },\n\t                    \"query-input\": {\n\t                        \"@type\": \"PropertyValueSpecification\",\n\t                        \"valueRequired\": true,\n\t                        \"valueName\": \"search_term_string\"\n\t                    }\n\t                }\n\t            ],\n\t            \"inLanguage\": \"en-US\"\n\t        },\n\t        {\n\t            \"@type\": \"Organization\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\",\n\t            \"name\": \"Interactive Brokers\",\n\t            \"alternateName\": \"IBKR\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t            \"logo\": {\n\t                \"@type\": \"ImageObject\",\n\t                \"inLanguage\": \"en-US\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\",\n\t                \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t                \"contentUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t                \"width\": 669,\n\t                \"height\": 669,\n\t                \"caption\": \"Interactive Brokers\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\"\n\t            },\n\t            \"publishingPrinciples\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/about-ibkr-campus\\\/\",\n\t            \"ethicsPolicy\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/cyber-security-notice\\\/\"\n\t        },\n\t        {\n\t            \"@type\": \"Person\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/f1653cb6c3a16623fb0f6fdce4ec05e1\",\n\t            \"name\": \"Steven Levine\",\n\t            \"description\": \"Steven Levine is a Senior Market Analyst at Interactive Brokers, (IBKR), which provides online trade execution and clearing services to institutional, professional and individual investors for a wide variety of electronically traded products including stocks, options, futures, forex, bonds, and funds worldwide.\",\n\t            \"sameAs\": [\n\t                \"https:\\\/\\\/interactivebrokers.com\"\n\t            ],\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/author\\\/steven-levine\\\/\"\n\t        }\n\t    ]\n\t}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Eyepopping Corn Prices &#8211; Fueling Food Inflation","description":"Sean McGovern, vice president of research at McAlinden Research Partners, and Jeff Praissman, IBKR\u2019s senior trading education specialist, join host...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/188896\/","og_locale":"en_US","og_type":"article","og_title":"Eyepopping Corn Prices - Fueling Food Inflation | IBKR Campus US","og_description":"Sean McGovern, vice president of research at McAlinden Research Partners, and Jeff Praissman, IBKR\u2019s senior trading education specialist, join host Steven Levine for a deep discussion about today\u2019s elevated corn prices, their impact on producer and consumer costs, as well as ahead of key beverage company earnings.","og_url":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/","og_site_name":"IBKR Campus US","article_published_time":"2023-04-19T17:15:00+00:00","article_modified_time":"2023-05-04T15:21:52+00:00","og_image":[{"width":1000,"height":563,"url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/pod-20230410-corn-rect.jpg","type":"image\/jpeg"}],"author":"Steven Levine","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Steven Levine","Est. reading time":"23 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/#article","isPartOf":{"@id":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/"},"author":{"name":"Steven Levine","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/person\/f1653cb6c3a16623fb0f6fdce4ec05e1"},"headline":"Eyepopping Corn Prices &#8211; Fueling Food Inflation","datePublished":"2023-04-19T17:15:00+00:00","dateModified":"2023-05-04T15:21:52+00:00","mainEntityOfPage":{"@id":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/"},"wordCount":5027,"commentCount":0,"publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"image":{"@id":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/#primaryimage"},"thumbnailUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/pod-20230410-corn-rect.jpg","keywords":["agriculture","commodities","corn","food prices","inflation","wheat"],"articleSection":["Asia Pacific","Commodities","Europe, the Middle East and Africa","IBKR Podcasts","North America","Podcasts","Region","Securities","South America","Text Articles","Traders' Insight"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/","url":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/","name":"Eyepopping Corn Prices - Fueling Food Inflation | IBKR Campus US","isPartOf":{"@id":"https:\/\/ibkrcampus.com\/campus\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/#primaryimage"},"image":{"@id":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/#primaryimage"},"thumbnailUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/pod-20230410-corn-rect.jpg","datePublished":"2023-04-19T17:15:00+00:00","dateModified":"2023-05-04T15:21:52+00:00","description":"Sean McGovern, vice president of research at McAlinden Research Partners, and Jeff Praissman, IBKR\u2019s senior trading education specialist, join host Steven Levine for a deep discussion about today\u2019s elevated corn prices, their impact on producer and consumer costs, as well as ahead of key beverage company earnings.","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/ibkr-podcasts\/eyepopping-corn-prices-fueling-food-inflation\/#primaryimage","url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/pod-20230410-corn-rect.jpg","contentUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/pod-20230410-corn-rect.jpg","width":1000,"height":563},{"@type":"WebSite","@id":"https:\/\/ibkrcampus.com\/campus\/#website","url":"https:\/\/ibkrcampus.com\/campus\/","name":"IBKR Campus US","description":"Financial Education from Interactive Brokers","publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ibkrcampus.com\/campus\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ibkrcampus.com\/campus\/#organization","name":"Interactive Brokers","alternateName":"IBKR","url":"https:\/\/ibkrcampus.com\/campus\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/","url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","contentUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","width":669,"height":669,"caption":"Interactive Brokers"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/"},"publishingPrinciples":"https:\/\/www.interactivebrokers.com\/campus\/about-ibkr-campus\/","ethicsPolicy":"https:\/\/www.interactivebrokers.com\/campus\/cyber-security-notice\/"},{"@type":"Person","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/person\/f1653cb6c3a16623fb0f6fdce4ec05e1","name":"Steven Levine","description":"Steven Levine is a Senior Market Analyst at Interactive Brokers, (IBKR), which provides online trade execution and clearing services to institutional, professional and individual investors for a wide variety of electronically traded products including stocks, options, futures, forex, bonds, and funds worldwide.","sameAs":["https:\/\/interactivebrokers.com"],"url":"https:\/\/www.interactivebrokers.com\/campus\/author\/steven-levine\/"}]}},"jetpack_featured_media_url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/pod-20230410-corn-rect.jpg","_links":{"self":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts\/188896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/comments?post=188896"}],"version-history":[{"count":0,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts\/188896\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/media\/189012"}],"wp:attachment":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/media?parent=188896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/categories?post=188896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/tags?post=188896"},{"taxonomy":"contributors-categories","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/contributors-categories?post=188896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}