Why does the market move the food value of a commodity into the energy economy?



  1. 0 Votes

    I’m not sure if this is what you’re asking exactly, but food prices tend to move with energy prices because agricultural products tend to need a lot of energy inputs. Fertilizers, for example, comprise an enormous input cost, and are a petroleum derivative. Therefore, when energy (eg. crude oil) costs rise, food supplies decrease. With less supply, the price of foodstuffs is forced upward.

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