Corn soaring to $8.50 bushel as drought cuts production. Too bad we don’t have more corn to go around, eh? Say, 40% more?
For some historical perspective on how much corn costs today, try this article from 2010:
Driven by frenzied trading on the Chicago Board of Trade, US corn prices rose by 8.5 percent on Friday, the largest one-day increase since 1973.
Over a two-day period, corn increased by more than 15 percent before easing slightly to 12.7 percent, a two-year high. Wheat, soybeans and other basic agricultural products have also soared, threatening a global food crisis like that of 2007-08.
When corn prices rose by 30 cents Friday, hitting the daily limit, the CBOT raised the limit to 45 cents after the market closed. As of Tuesday, corn was trading at $5.84 a bushel, with analysts predicting prices would rise to $6 a bushel, a level seen only at the height of the 2007-08 food crisis.
Back in 2010, even Al Gore admitted that diverting 40% of our corn crop to ethanol production was “not good policy”. Not so Obama; he loves the stuff. In fact, the New York Times reported that “Obama camp [is] closely tied to ethanol” and attributed his midwestern primary victories to his support of the fuel.