Corn prices are the key here. Corn prices affect the price of meat and milk. And we’re in a drought so the price of corn is already climbing through the roof.
Consumers can expect to pay more for beef, poultry and milk, as the worst drought in 50 years spreads across the Midwest, destroying crops and sending corn and soybean prices spiking.
Meanwhile, corn prices for December delivery, the most active contract, rose as high as $7.96 a bushel Wednesday. That’s still just about a nickel shy of the record high set in June 2010. The front month September contract continued to trade above $8 a bushel.
Still, prices are up nearly 50% over the past three months. And soybean prices have also been on the rise, gaining 25% since early June.
What does this have to do with the EPA? One word. Ethanol.
Read more at FrontPageMag.com. By Daniel Greenfeld.
Photo credit: keepthebyte (Creative Commons)