Are retail meat prices set as the result of commodity trading?


Quick Answer

Commodity speculation correlates to the price of meat; however, this is not necessarily a direct relationship, and market prices are not set based on this. The same external factors, such as supply and demand and market trends, affect both economic measures.

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Full Answer

As an example of the complexity of the issue, economists suggest that increased commodity trading in grain affects the price of meat by pushing up the costs of livestock feed. However, as of 2015, a poor harvest caused by drought drives increased grain speculation; these droughts have also affected herds, reducing meat supplies. It is therefore difficult to determine which factor has the most impact on rising meat prices.

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