Global cooling drives up corn prices

The AP reports that corn futures (the price agreed today for delivery at a future date) hit a record $6 per bushel, yesterday, “driven up by an expected supply shortfall.” In other words, the amount of corn expected to be available wasn’t enough, at lower prices, to satisfy expected demand. About a year ago, USA Today (graphic below) and the New York Times bemoaned what was then viewed as a sharp rise in the price of corn:

The current price of corn is $3.23 a bushel, more than half again what it was a year ago, and beginning to bring to mind the record $5.545 a bushel set in July 1996.

Despite the rise in prices, the U.S. Department of Agricultural is predicting that farmers will plant 8% less corn this year than last. Compounding the grain pain is record worldwide demand for corn to feed people and livestock, sweeten soft drinks, and fuel vehicles. Why — with demand so high — is production down? Several factors drive production but weather arguably ranks as the most powerful of all.

You’d think– given Al Gore’s abundant hot air on global warming — that Earth just might be getting too hot for corn. But you would be wrong. Buried in the middle of the AP’s write up is this hint that if green house gases really do warm things up (and I’m not saying they do), what we need is more, not less of them:

Moreover, cold, wet weather in parts of the U.S. corn belt may force farmers to delay spring planting, potentially sending prices even higher.

The impact of rising corn prices won’t be limited to soft drinks and corn flakes:

While corn growers are reaping record profits, U.S. consumers can expect even higher grocery bills — especially for meat and pork — as livestock producers are forced to pass on higher animal feed costs and thin their herd size.

In addition, corn and corn syrup are used in an array of products, meaning the price of everything from candy to soft drinks will eventually go up . . .

Somebody!  Turn up the heat!

More of this story at Yahoo Finance.