Higher Oil, Grain and Chicken Costs Offset Relief From Falling Cattle Prices

U.S. restaurants have limited room to cut menu prices as lower cattle costs are offset by rising cooking-oil, grain and chicken prices, leaving key food inputs mixed. Cattle prices were 9% below year-earlier levels in the third quarter, after an annual increase of 9.8% in the second quarter. The shift offered some relief on one major restaurant input, but other food costs moved higher. Soybean oil, wheat and corn prices rose during the third quarter. Chicken prices also turned higher: breast prices in October were 4% above their year-earlier level, compared with a 36% annual decline in July.

Source: TokenPost