Corn - The New Gold Standard?
I was watching the farm market report this morning and was shocked to learn that the price of corn has doubled in the past 3-4 months. As the price of crude oil has gone up to over $70 a barrel, and alternative renewable fuel sources are beginning to be taken seriously (like Ethanol from corn) - the demand for corn for other than as a source of food is driving the prices up!
Cattle (beef) are finished off in a feed lot to fatten up on corn - with the price of corn doubling the price of beef is probably going to increase anywhere from $0.50-$1.00 per pound in the next few months.
But, the biggest price increases per pound will probably be in pork, fowl (chickens, turkeys, geese, ducks) and farm-raised fresh water fish like trout and catfish. Unlike cattle which can be grazed on grass for a little longer - these are not grass grazers - the are corn fed!
I doubt that government subsidies will increase enough to keep the price down in light of the new demand for creating alternative fuels rises.
Anyway - if you notice prices going up at faster than normal inflation rates on these items over the next few months or year ... you'll know why.
"It ain't what you don't know that gets you in trouble. It's what you know for sure that just ain't so." - Mark Twain