Global corn prices surge 23 percent from drought; food inflation to accelerate in 2012 and 2013

Tuesday, August 14, 2012 by: J. D. Heyes
Tags: food prices, drought, corn

eTrust Pro Certified

Most Viewed Articles
Popular on Facebook
BACK INTO THE CLOSET: Why U.S. reporters are not allowed to write about rainbow events in nations where being gay is still condemned
Depopulation test run? 75% of children who received vaccines in Mexican town now dead or hospitalized
A family destroyed: Six-month-old dies after clinic injects baby with 13 vaccines at once without mother's informed consent
INVESTIGATION: Three days before Dr. Bradstreet was found dead in a river, U.S. govt. agents raided his research facility to seize a breakthrough cancer treatment called GcMAF
BAM! Chipotle goes 100% non-GMO; flatly rejecting the biotech industry and its toxic food ingredients
BOMBSHELL: China and America already at war: Tianjin explosion carried out by Pentagon space weapon in retaliation for Yuan currency devaluation... Military helicopters now patrolling Beijing
ECONOMIC SLAVERY FOR ALL: While we were distracted with the Confederate flag flap, Congress quietly forfeited our entire economic future via fast-track trade authority
March Against Monsanto explodes globally... World citizens stage massive protests across 38 countries, 428 cities... mainstream media pretends it never happened
GMO crops totally banned in Russia... powerful nation blocks Monsanto's agricultural imperialism and mass poisoning of the population
SCOTUS same-sex marriage decision may have just legalized the concealed carry of loaded firearms across all 50 states, nullifying gun laws everywhere
Nearly every mass shooting in the last 20 years shares one surprising thing? and it's not guns
Vicious attack on Dr. Oz actually waged by biotech mafia; plot to destroy Oz launched after episode on glyphosate toxicity went viral
Holistic cancer treatment pioneer Dr. Nicholas Gonzalez dies suddenly; patients mourn the loss of a compassionate, innovative doctor who helped thousands heal from cancer
Pepsi drops aspartame from diet soda as consumers reject toxic sweetener
Bride of Frankenfood: Hillary Clinton pushes GMO agenda... hires Monsanto lobbyist... takes huge dollars from Monsanto
Wild eyes and bowl cuts: Why do mass shooters always share the same hair styles and crazed zombie stares?
Mind control through emotional domination: How we're all being manipulated by the "crisis of the NOW"
Genetically white woman now claims self-identify as black: If you can choose your gender, can you also choose your race? What about your species? Can a human claim to be a llama?
(NaturalNews) You have automobile insurance, homeowners insurance, and perhaps even health and life insurance, among other coverage. Do you also have food insurance, as in, stored supplies of food that can get you through days and weeks of food shortages, should the economy collapse or a terrorist strike?

Okay, if that seems extreme for you, how about just getting enough to get you through a period of food inflation, because you're about to go through one of those periods.

The widespread and still-lingering drought throughout the Midwest - the world's bread basket, if you will - has seen a dramatic surge in crop failures which have resulted in shortages of key commodities like corn (which is not just for eating anymore; we're burning up millions of bushels in our gas tanks). The result is markedly higher prices for a number of grocery items which have already begun to manifest at your local supermarket, and which are likely to go even higher throughout the remainder of 2012 and well into next year.

More for what feeds some of our food

"This is not some gentle monthly wake-up call, it's the same global alarm that's been screaming at us since 2008," Colin Roche of Oxfam told CNN/Money, noting that the continuing drought could eventually lead to food shortages for tens of millions worldwide.

As the world's leading food producer, naturally any fall-off in production is bound to be felt globally. In fact, price increases were already being measured; the United Nations' monthly food Price Index for July saw food prices jump six percent after falling for three consecutive months.

The main drivers of the price increases were grains, driven primarily by steep increases in corn prices (which hit a record high of $8.28 per bushel on the Chicago Board of Trade Aug. 9 after having risen a staggering 60 percent over the previous seven weeks).

"At this point, the damage to the corn crop is done, but it's a matter of assessing and quantifying the damage," Sal Gilbertie, chief investment of Teucrium Trading, which runs the Teucrium Corn ETF, told CNN/Money. "The corn harvest is just now beginning, and with each successive government report, we'll get a closer read on the actual damage."

It won't be pretty.

In July "the U.S. Department of Agriculture projected a shortfall of corn supplies that would reduce the yield for the 2012-2013 season by 20 bushels per acre to 146 bushels per acre," CNN said. "This month, analysts are expecting the USDA to ratchet down the yield by another 20 bushels per acre."

One bright spot?

Corn prices surged 23 percent in July, an increase driven by "the severe deterioration of maize crop prospects in the United States, following drought conditions and excessive heat during critical stages of the crop development," said the UN.

"It's going to have a big impact [on consumers]," Sam Zippin, an analyst at financial information firm Sageworks, said, adding: "Corn is in almost everything."

That includes grain for livestock. So, when feed goes up - and it will - ranchers will have to increase the price of their livestock. Already analysts are predicting the price of beef will rise.

Ranchers may begin to look for a substitute for corn, but Paul McNamara, associate professor at the University of Illinois' College of Agriculture, said that will also lead to higher grain prices.

There may be a bright spot in all of this doom and gloom, however.

McNamara said the drought's crushing impact on this year's corn crop could force U.S. lawmakers to reexamine the burning of food for fuel; he says the fall-off in corn production might make Washington reconsider corn-based ethanol policy, which currently mandates that 10 percent of the nation's automotive fuel supply come from corn.


Follow real-time breaking news headlines on
Food prices at
Join over four million monthly readers. Your privacy is protected. Unsubscribe at any time.
comments powered by Disqus
Take Action: Support by linking back to this article from your website

Permalink to this article:

Embed article link: (copy HTML code below):

Reprinting this article:
Non-commercial use OK, cite with clickable link.

Follow Natural News on Facebook, Twitter, Google Plus, and Pinterest

Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...


Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of, the internet's No. 1 natural health news site. (Source:

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.