Speaking of bite-sized morsels, here’s an article from our partners at MainStreet.com.
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Why The Midwest Floods Could Impact The Cost Of Your Coke And Your Burger
By Simon Constable
Heavy flooding in the Midwest has sent corn prices soaring to record highs — that much is clear. But what the effects will be in grocery stores and on dinner tables is far from obvious.
The torrential rains have left plantings down and projected U.S. production is set to fall 10% this growing season vs. last year, according to the most recent data published by the U.S. Department of Agriculture on June 10. As a result, prices for September-dated corn contracts have zoomed to $7.22 a bushel recently, up from around $6 at the end of June.
That may be as far as it goes.
Don Roose, president of West Des Moines, Iowa-based U.S. Commodities, says he doesn’t see the price going a whole lot higher.
“I think something sub-$8 a bushel” will be the top, he says.
So, how does the price not continue its upward trajectory when U.S. consumption of the grain for ethanol has been expected to balloon?
Roose sees the high prices actually doing what they are supposed to do: restricting demand.
“That’s the job of the market; to go high enough so that someone starts to slow down,” he says.
How does this impact the cost of a sudden Mac Attack? Click here to find out.
