Corn prices on the rise
Fri, 11 Feb 2011 20:49:24 GMT —
Corn prices are hovering near the seven dollar mark per bushell. The reason is supply and demand. Ethanol production is at all time highs, using about a third of corn harvested in the U-S. Meanwhile developing countries like India and China are increasing their meat intake...which takes U-S corn to produce. But against the rules of supply and demand, the higher prices aren't slowing sales which is driving prices up further.
But while it's good for some, local farmers aren't coming out on top. That's according to Mike Roegge, a crops educator with University of Illinois Extension.
Roegge said, "Local farmers saw the worst crops last year than they've seen in a while."
But while we see higher prices at the grain elevator, we'll probably spend a bit more at the grocery store.
But Roegge says the price increase will be more like pennies than dollars.
Roegge says the biggest increase will be in the meat aisle since higher priced corn is used to feed livestock like cattle, hogs and chickens. But despite a possible increase, folks at grocery stores like County Market are already trying to save you some dough.
Right now the U.S. government is projecting the tightest supply of corn since the Great Depression.
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