Corn prices hit all-time high
Hot, dry weather across the country has ruined crops. Is it time to rethink the ethanol mandate?
This year's expected corn crop is dropping by the week, and corn prices have shot up incredibly fast as a result. Corn futures hit record highs Thursday, with September futures prices up about 50% from last month, The Wall Street Journal reports.
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Customers will feel the pain, since corn touches so many parts of our diet.
One area already affected is meat. As the price of corn rises, the price of cattle feed goes up and the production of livestock drops, according to John Anderson, a senior economist with the American Farm Bureau Federation. So expect to see higher prices for beef, chicken, eggs, pork and dairy products. Beef prices had already been rising.
Another economist says shoppers may see an increase of only 1% or so. "A 50% increase in the price of corn tends to raise total shopping bills by about 1%," Ricky Volpe, a research economist with the U.S. Department of Agriculture, told SmartMoney.
InvestorPlace has a nice roundup of 70 things that might cost more because of surging corn prices.
The volatile price of corn has renewed the debate about changing the federal ethanol mandate. Congress passed the Energy Independence and Security Act in 2007, but markets are still struggling to meet the law's grain demands, Purdue University's Steve Leer wrote last year.
About 27% of the country's corn drop went to ethanol last year to meet the federal mandate, according to Leer. Purdue's Wally Tyner, an energy policy specialist, said that by 2015, the law requires 15 billion gallons of ethanol to be consumed per year, regardless of the price of corn.
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This political scam is beyond reproach even against the bank bailouts if added up in total cost. Every Congressman that voted for it ought to be put in the soup line come November.
They did it to you, time to return the favor.
I dont understand why the drought has affected prices now as all the products that use corn are bought on futures. Warehouses are full of these products waiting to be put on the shelf. But we will be paying premium now for products already ready and waiting. The manufacturer has already paid last years prices but we will be charged for this years prices. But if there is a bumper crop next year, can we expect prices to drop??
Its not just the drought. In California the new 2012 CARB regulations on commercial/diesel trucks go into effect and many truckers will be unable to go into California, others in California will leave or go out of business and those willing to modify to meet CARB are charging more to haul frieght so many items will increase in price.
Corn, Soybeans, Hay are hit by drought and wildfires will be in short supply driving up costs.
Cattle herds are being thrown on the market causing prices to drop but only in the short term. Many herds will take years to rebuild so prices will rise drastically for beef soon also.
America is heading for a serious FOOD crisis in supply and cost.
Its time to stop subsidizing corn and allow farmers to grow hemp. corn is lousy food, lousy animal feed, and hemp is a much better bio fuel PACKED with oil, and its drought tolerant! But the cotton lobby, the oil lobby, the corn lobby, and other special interests keep suppressing this logical move for their own selfish interests.
Now is the time to convert long-haul truckers over to natural gas. This would be the easiest way to make a huge impact on our fuel needs... as new natural gas tanks at truck stops would be much more economically installed than they could be at neighborhood gas stations for the family car.
MSN please stop with the advertisment i see enough commericals as it is. report the news please
Corn for fel was always a bad idea but try to stop a subsidy! It takes more energy to make a gallon of ethanol from corn that you ever save in fuel or oil cost. They need to set aside the ethanol mandate and the subsidy for ethanol. It is a stupid idea to make a fuel out of a food stock.
All your riots in the middle east "Arab Spring" started over food prices and unemployment. The American consumer should be spared high food prices during a deep recession. Stop corn exports also until corn yields are back up...Russia stoped exports a few years ago when they had crop/grain failure but his out fit won't.
I think the time has come to bail from the corn as a additive to fuel, obviously we should use straight crude for combustion horse power and food to feed people. we all know there is enough oil out there to keep us stable for another century.
maybe the drought would be survivable if we had more corn for food.... just a thought.
Corn ethanol is a cruel joke. The return, as in energy in for energy out, is not worth trying. That money should've been put into other alternative energy sources. Even if it needed to stay in some type of other ethanol form like switch grass or promising algae producing ethanol. Scrap the program and take what we learned and apply it to something that could actually make a difference. Stop causing food prices to go up for no reason. Also end speculators, I know more to it than that, but that will help too.
I think its time
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