The floods across America's grain belt this week have sent corn and soybean prices surging to record levels. No doubt, as the yields fall, food prices and even ethanol and biodiesel prices will rise.
I urge you to take a look at updates from
Agriculture.com, which features articles about some farmers who say they are on the verge of disaster right now. It is getting too late to replant corn in some areas,
although Iowa farmers are trying.
Reuters says:
Corn prices on the Chicago Board of Trade have surged 80 percent over the past year, with nearly 17 percent of that tacked on just this month.
Soybeans surged 3 percent and wheat leaped nearly 5 percent as those markets followed corn, but the historic rainfall and flooding in the United States also were beginning to hurt soy and wheat crop prospects.
"There is definitely concern. There is way too much water and, even if it is drier next week, it won't matter now. It's too late to plant corn and even bean yields are being affected," Vic Lespinasse, an analyst for GrainAnalyst.com, said.
