Corn Spot Doubles From March 2010

In a discussion of record crop planting in the corn market, a CNBC report forecasts high corn prices for 2011. The reason is very low inventory levels due to demand for the grain in the production of ethanol. The graph displayed on air showed a 100% gain in the spot price year over year.

The discussion spread to other crops and cotton is up 145% since March 2010. Expect your linen replacement costs to continue upward.

How can caterers take advantage of the rising grain prices? These record price moves are very well communicated in the press. With all the national press highlighting huge price increases, your customers will be more receptive to menu price increases. In every menu price change, you need to study your competition carefully.

Even the large public companies with futures protection may not be able to outrun this wave. I don't see this as a short term trend. Global demand is on the increase and the rhetoric regarding less dependence on foreign oil implies greater demand for grains.