There's a lot of flooding happening in the midwest right now, and if you watch carefully, quite a bit of the land that is being flooded is covered with crops. You can tell because you see the tops of corn stalks sticking out of the water.
This matters to you as a farmer, or you as a consumer, because we're currently consuming over 40% of our nations total production of corn as ethanol. 40% of the corn that we grow in this country is being used for fuel.
5 years ago the amount of corn left over from the year before was around 15% of the harvest. That means, that about this time of year, 15% of the harvest was unconsumed, and typically that corn was then consumed as animal feed.
This year the amount of corn left over from last years harvest is about 2%.
The recent flooding, and cool, wet weather is destroying more than 2% of our corn this year. What I'm seeing is pretty much a setup for a disastrous game of musical chairs. Someone who wants corn isn't going to get it this year, or at least as much of it as they'd like.
This is reflected in my current feed prices, which are hovering around $400/ton -- up from $260/ton a couple of years ago. And going up.
Expect higher prices for food this year - and think about it when you look at the sticker on the pump that says "ethanol".
The last time that this happened there were food riots in poor countries all over the world.
Ethanol is evil. Ethanol is killing people.
4 hours ago