Corn prices are up 60%! Don’t eat corn? Doesn’t matter – corn is in almost everything that we eat. It’s used as a filler, as a preservative, a sweetener, as well as a primary source of feed for livestock. Pull out something from the pantry and corn, or some corn based product, will be listed in the ingredients.
What does this mean for consumers? Well, prices are already up because of the drought (food prices are up 6%). So, this will likely compound the problem rising food prices – not just for the U.S. but for the rest of the world as well. Food is a major U.S. export (constituting 10% of our $1.5 trillion export market), so the drought and the rise of corn prices will affect food prices worldwide.