Corn hits a new record — $6 a bushel

[RedEarth]

Corn hits a new record — $6 a bushel

At the end of February, I blogged on a Fortune article that had the sub-head, “The ethanol boom is running out of gas as corn prices spike.” That article noted:

Spurred by an ethanol plant construction binge, corn prices have gone stratospheric, soaring from below $2 a bushel in 2006 to over $5.25 a bushel today. As a result, it’s become difficult for ethanol plants to make a healthy profit, even with oil at $100 a barrel.

Just six weeks later, we have an AP article with the subhead: “Corn Prices Jump to Record $6 a Bushel, Driving Up Costs for Food, Alternative Energy.”

And it gets worse:

Worldwide demand for corn to feed livestock and to make biofuel is putting enormous pressure on global supply. And with the U.S. expected to plant less corn, the supply shortage will only worsen. The U.S. Department of Agriculture projected that farmers will plant 86 million acres of corn in 2008, an 8 percent drop from last year….

http://climateprogress.org/2008/04/03/corn-hits-a-new-record-6-a-bushel/#more-2571

[gristy]

1. growin' your oil

A bad idea in formulation, and still a bad idea in implementation.

[gear_head]

2. meat is a luxury ...

and should be priced accordingly

[kestrel91316]

3. When I moved last Oct. I found 30 lb or so of cornmeal I had put aside for Y2K, lol,

and for some reason I hung onto it. Guess I'm glad now. Cornbread could become food for only the wealthy, and I'm sitting pretty.

I'll sell ya 1 lb for $100. Get it while ya can - price is goin' up on Monday.