Biden is desperately trying to cut prices! Cargill "did what it pleased" predicted that food prices had risen to the end

Executives at Cargill, one of the world's largest agricultural companies, said soaring food prices, driven by supply chain obstacles, weather disasters and pent-up demand, were coming to an end. As U.S. inflation rises to a 40-year high, that could give u.S. President Joe Biden, who is looking for ways to cut prices, a little comfort.

"We're going to see some peaks, and maybe the prices of some commodities are going to start falling." Cargill CEO Dave MacLennan said Wednesday. He pointed out that the cyclical nature of commodities is part of the reason why price pressures will ease. "I am optimistic that we will see prices stabilize and possibly even fall in some commodities."

After the outbreak of the new crown epidemic, the price of food products, including beef and chicken, rose sharply. The closure of production plants in the early stages of the pandemic led to a surge in grocery purchases. But as output rebounds, some supply chain pressures are eased.

While McLennan expects upward pressure on food prices to ease, he said broader concerns about overall price increases remain and that the current conversation about inflation is more enduring than "temporary" — a position he held three months ago.

"Obviously I was wrong and inflation is going to go on," McLennan said of rising inflation. "Everybody talks about inflation, everybody sees it."

McLennan, who manages one of the largest meat processors in the United States, cites continued supply chain disruptions and labor shortages as the reasons behind his inflation view. Amid fierce competition and rising wages for manufacturing jobs, meat processors have struggled to attract and retain workers.

Earlier this month, Cargill's Canadian beef processing plant in High River, Alberta, avoided a strike after union workers accepted a new employment contract. The plant supplies about 40% of Canada's beef.

Refute the White House claim

McLennan also countered the White House's claim that meat prices rose because meat processors took advantage of industry concentration. In this industry, a small number of multinational companies are responsible for the vast majority of meat and poultry processing.

"It's a supply-and-demand driven market, so I disagree with the claim that there's manipulation or exploitation," McLennan said.

Biden on Tuesday called on Congress to hold a hearing investigating whether large meat processors have engaged in anti-competitive behavior. Even as he made the move, U.S. inflation had reached nearly 40-year highs. The November Consumer Price Index (CPI) showed that meat prices were the single biggest contributor to the rise in food prices.

The White House issued a briefing last week saying that since the outbreak of the epidemic, four large U.S. meat companies have used their market power to push up meat prices and depress the incomes of farmers and farmers. Despite reduced sales due to the inability of Americans to afford meat, the profits of the meat giants have reached "unprecedented" levels.

Rising inflation has become Biden's biggest headache. As prices continue to soar, not only will Biden's approval rating plummet, but the fate of the Democratic Party in the midterm elections next year will also be clouded. Biden has taken a series of measures to reduce inflation, including announcing the release of 50 million barrels of oil reserves to reduce oil prices, ordering two major ports in California to operate 24 hours a day, and calling for antitrust investigations into the behavior of meat companies.