Breakfast just got a whole lot more expensive
02 Jul 2012The price of corn rocketed 15% last week, taking increases for the month of June to 25%, on the back of escalating drought fears in the US Midwest.
According to agricultural researchers at Rabobank, the price of corn could hit a record $8 a bushel by December, against last Friday’s price of $6.35 in Chicago.
According to a Rabobank research report: “Poor and very poor condition ratings have risen from 3% of the crop on May 20 to 14% currently – and are likely to increase in coming weeks.
“Temperatures over the period are forecast to be severely hot, with maximums reaching 100˚F over almost all the corn belt,” it added, pointing out that corn was in increasing danger of becoming stunted, with soil suffering from moisture deficits.
Ker Chung Yang, a commodities analyst at Phillip Futures in Singapore, told Reuters: “The [US] Midwest drought is expected to worsen and result in lower yields.”
