While food prices dropped last month, the continuing surge of corn prices may spur spur food prices higher, as the ethanol fiasco continues to haunt lawmakers and consumers.
The reason given for the price increase is the weather in the midwest, but that's in reality a secondary cause, as the subsidy's afforded the industry by lawmakers is the underlying reason prices continue to increase.
With so much corn going to dubious ethanol production, it has caused an artificial demand which has caused prices to grow. As a result, every time something happens in the supply chain, it is exasperated because of the ethanol foolishness.
Corn reached a record price of $7.30 a barrel on the CBOT Friday, the sixth day in a row it broke a record.
Producers of meat are especially concerned as animal feed costs will rise, causing them to raise their prices as well.
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