Soybean oil goes into everything, it is truly amazing some of the places you'll find it - frying, baking, insect repellents, paint, printing ink - and this is what the price has been doing for the past month (4 hour prints, two month chart):
As those prices work their way through the system a lot of end products will be priced higher than today.
And following up on Wednesday's "China, Taiwan, Pigs and Sanctions", from Capital Flows and Asset Markets, November 1 (asterisks = charts omitted due to laziness, many charts:
FOOD INFLATION REVISITED
Before Ukraine, Chinese pork prices drove food inflation. Chinese pork price looks likely to drive food inflation again.
Food inflation has continued to surprise to the upside in the US.*****That food inflation has not calmed down in recent months is somewhat surprising as we have seen weakness in commodity food prices in recent months.*****Taking a long-term view, you could also convince yourself that food prices have topped out, and food deflation is more likely.*****However, well before Ukraine became an issue, Chinese food prices were driving global food prices higher. In 2019, China suffered from Asian Swine Flu which destroyed much of China’s pig herd. China has more pigs than the rest of the world combined*****As China rebuilt its herd, but this required large imports of pork and corn. Pork is essentially processed corn, with 4kg of corn needed to produce 1kg of pork. China in 2021 became the biggest importer of US corn, but now these imports are falling.....
.....MUCH MORE
HT:ZH
So there you go, if the $300 oil doesn't get us the pigs and corn and soybean oil will.
Oh, and rice too.
