Wednesday, June 11, 2008

Floods Causing Rise in Corn Price

I am sure the food manufacturers and Grocery Manufacturer Association will blame the American farmer for all this rain and the fact that corn prices are going higher. But in all seriousness, Illinois and other parts of the midwest are getting seriously hurt by the large amounts of rainfall in the last month:

“I wouldn’t look for a big pullback in these prices,” said University of Illinois Extension economist Darrell Good.

Corn for July delivery resumed its March on $7 a bushel at the Chicago Board of Trade on Tuesday in anticipation of reduced yields this summer, closing at a record $6.73 per bushel. The previous record high of $6.72 was reached Monday.

A variety of commodity analysts also warned the prospect of a smaller crop across the Corn Belt this summer would only add to food prices already on the rise as a result of energy costs, aweak dollar and export demand.

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