Rising corn prices causes worry of increasing food costs

Corn prices have increased this year causing concern that food prices will increase. Due to the problems that hit Russia this year with the heat and drought that followed and then the heat and too much rain fall in parts of America has sent grain prices soaring. The United States Agriculture Department report said that this years corn crop would be smaller than expected. The harvest is forecast to be three percent lower than 2009 crop.

The crop will still probably be the third largest on record, but demand for corn is high as animal feed, ethanol production and for exports. In the markets corn is selling for US$5.84 a bushel nearly 70 percent increase since the last three crops were selling for US$3.43 a bushel. Read more...