Although excellent weather conditions have helped foster a bumper crop for corn this year—in spite of earlier concerns related to flooding in the Midwest—food prices are likely to noticeably drop, since a disproportionate cut of the corn will go to ethanol production.
USDA notes that projections are currently for a harvest of 12.3 million bushels, a number that’s 573 million bushels higher than predicted as early as a month ago.
Although the high corn yield is unlikely to affect a significant change in food prices, analysts are predicting that it might help prevent prices from rising too much during 2009.
Source: Chicago Tribune
“Corn Bonanza Won’t Cut Food Prices”
