Wednesday, June 11, 2008

 

The Price Of Corn

At a record high, and likely heading higher

Weather concerns drove futures prices higher today at the CBOT:
Corn prices on the Chicago Board of Trade have surged 80 percent over the past year, with nearly 17 percent of that tacked on just this month.

Soybeans surged 3 percent and wheat leaped nearly 5 percent as those markets followed corn, but the historic rainfall and flooding in the United States also were beginning to hurt soy and wheat crop prospects.

"There is definitely concern. There is way too much water and, even if it is drier next week, it won't matter now. It's too late to plant corn and even bean yields are being affected," Vic Lespinasse, an analyst for GrainAnalyst.com, said.
More rain is forecast.

Weather isn't the only culprit. Our political class is to very much to blame as well.

John McCain opposes subsidies of any kind. I hope he makes an issue out of the rising cost of food this fall.

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