Midwest Floods push corn prices higher. Be ready to pay more for meat…

For those of you outside the Midwest, we’ve been getting hammered with heavy rains over the last week or so, which have resulted in massive flooding in Southern Minnesota, Iowa, Wisconsin and elsewhere. Matt at FGLB is dealing with some water in the basement right now, as is my boss, who lives in Rochester.

Besides the human tragedy we see playing out around here and regaining respect for the sheer power of nature, there will be at least one other follow-on effect from all this: rising food prices. Estimates are coming in that between 3 and 10 percent of Iowa’s corn crop will be lost for this season. Other states in the region will lose a percent of their crop as well. As a result of this, corn prices have been surging over the last few days, passing $7 per bushel, which is nearly double what it was last year. I heard a news report on this subject on MPR this morning, and an econ professor from the U of M stated that he expected to see prices rise on animal products, since most of the corn that was lost is feed corn. He specifically mentioned beef, pork, poultry, eggs & dairy products… they had risen around 5% in the last year, and he expected them to rise again. He also mentioned that around 38% of the corn crop is going into biofuels right now, which won’t help food prices or support for corn ethanol.

Best wishes to Matt and everyone else trying to stay dry…

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2 Responses to Midwest Floods push corn prices higher. Be ready to pay more for meat…

  1. Thanks man. We’ll be alright. Well, at least until FEMA gets here. 😉

  2. fritz says:

    “Get ready to pay more for meat”

    No..Get used to rice and beans and chicken

    Red meat is way too pricey as anyhoo.

    maybe once a year in march I will have corned beef

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