What kind of economic impact can we expect from this years extreme corn supply shortage?
Well, I can tell you right now the prices of fresh corn ears at the super market is already almost a third the cost more then it was last year. If I was closer to Maine I would buy fresh locally grown corn that used to be "expensive" for the last 10 years is now less then the super market.
I would also assume corn plastics like McDonalds clear cafe cups and corn ethanol will also suffer higher costs to the companies/customers.
It was expected of rising prices for food and effects on ethanol production. For more details visit these links: http://www.msnbc.msn.com/id/48076883/ns … Al4sG2e499 and http://www.consumerenergyreport.com/201 … ol-market/
There is no doubt there will be a big impact on prices associated with anything dealing with corn or its by products. Meat, eggs, poultry, and anything with corn syrup will see prices rise. Farmers are not only facing droughts, but now have some kind of worm destroying their crops. Even the hay fields are not safe. Pastures are not green enough for summer feeding making the farmer feed cattle like they would in the winter months. This may force many to sell out. Without the farmer our dinner tables will have pretty slim picking.
If it prolong, there is will noisy from the floor and might cause demonstration on street due to high inflation and people are not able to cope with it.
It depends on which sector of the agriculture you're talking about. The price of beef, chicken and pork will rise, because it's directly related to the corn and grain segment of the market.
Food like cereals will rise less because corn only accounts for about 12 cents a box, which means in light of the drought, would probably result in a price increase of 2 cents more than that. So 14 cents a box may be the input cost of corn.
You really have to almost go to each individual product to assess the impact, but overall, it's the price of meat we'll all see go up, but anything that uses corn as a sweetening agent will rise in price.
The question is how much corn input into a particular product is being utilized, and how the rise in price of corn will affect it.
Water, food, and energy will spike. The dollar and other fiat currencies will lose its value tremendously.
Excruciatingly high food prices for one. Corn is used in just about everything in one form or another. I heard an economist on the news actually recommending stocking up on things like canned food because next year the prices will skyrocket.
The farmers will be hurting because their crops were ruined and so no income and it trickles on down from there.
The 2012 drought may cause a big impact on the economy. This is my opinion... read more
Definitely the food price will rise sharply in the near future.
To be entirely honest, I'm not very worried. In fact, I think it might have some positive results. Just as many people mentioned here, corn is used in so many ways in so many processed foods, which make up a majority of the American diet. Truth is, the majority of these foods have little or no actual nutritional value. Furthermore, as stated before, meat prices will likely rise due to corn being a feed staple. While meat isn't necessarily all bad, Americans eat far more than they need to. So just maybe rising prices of processed foods and meat will inspire some to go out and buy some food with actual nutritional value: alternative grains, leafy greens, nuts, beans etc. I guess I kinda just hold a grudge against corn...
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