DROUGHT, CORN AND FOOD PRICES
Corn futures for December 2012 closed the trade today in Chicago at $ 7.84 ¼. US Department of Agriculture Secretary Tom Vilsack said today that 78% of the U.S. corn acreage is in drought designated counties; 38% of the corn is rated poor to very poor and corn price is up 38%. Even with all this we today could have the 3rd or 4th largest corn crop due to more acres being planted this year. A lot is being said about what the drought means, but Secretary Vilsack reiterated today that now is not the time you will see higher food prices due to the drought. We may see food prices rise 2.5-3.5% in 2013, but not now. Here’s some information regarding the role that corn plays in food prices.