Corn Prices Surge to Record High

Corn futures have hit a new record high.


The USDA, this morning, cut its estimate for the US corn crop by 16.9 per cent from its previous estimate in July, to just 10.779bn bushels. In response, corn futures up more than 3 per cent to a record  $8.4375 a bushel.

Wheat, corn and soybean prices have already surged 25-50% higher since June.

Of note, this should not be considered an indication of overall price inflation. Bernanke is not printing money aggressively at the present time. However, this will mean higher prices for much foodstuff. Cattle prices may fall first as farmers send cattle to market because of the cost of feed, but this will mean significantly less meat supply down the road and even higher meat prices at that time.