How corn price effect food price?
Corn is being diverted from human consumption, kicking off a domino effect of problems tied to food prices. It starts
with ethanol produced from corn, which optimists hope will help solve the U.S. reliance on foreign oil, as well as provide a
fuel that burns cleaner.
Corn and corn germ oil
And this is just the tip of the iceberg when it comes to the relationship between corn and rising food prices. As corn prices rise, farmers plant more corn and fewer fields of wheat, barley,
soybean, canola and anything else that sprouts from the ground. Mr. Farmers notes that soy and canola prices have doubled in the past year-and-a-half while the price of wheat is up 80%.
At the same time, the cost of rump roasts, chicken wings and milk is also climbing because of ethanol production. Corn is the main ingredient in animal feed, and as corn prices go up, so does the cost of feeding livestock.
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