Aside from the devastating effects to residents in the midwest from the recent weather causing floods there, crops will be significantly effected this year.
On the heels of a year long rise in corn prices due to the rising cost of crude oil, Corn is now at an all time high and other crops, such as soybeans, are also on the rise.
Corn prices have shot up more than 80 percent in the past year amid a spike in crude oil prices, a weak U.S. dollar and rocketing demand for food in developing countries like China and India.
Other agriculture futures also climbed Friday, with soybeans nearing all-time highs.
Soybeans for July delivery rose 23.5 cents to settle at $15.60 a bushel on the CBOT, after earlier rising as high as $15.70. Soybeans hit their all-time high of $15.96, reached in March.
Meanwhile, wheat for July delivery gained 31 cents to settle at $8.82 a bushel.
It will be interesting to follow the development of this food crisis, particularly since there is a push towards production of alternative fuels using corn. Will the production of bio-fuels now decrease so that people can be fed?
(See my earlier post on Growing grain for fuel and meat: There’s something wrong with this picture.)