Another Summer, Another Food Crisis?
March 16th, 2010 By Tom Laskawy
Corn prices peaked during the run up to the 2008 economic crisis at $7.88 per bushel and as the prices of corn and other commodities rose we saw food riots worldwide. Commodity prices soon came back the earth — corn is currently trading at about $4 a barrel. Given that we’re in the middle of an anemic recovery, you’d think spiking food prices are thankfully the last thing we have to worry about.
Not so, say a pair of economists from University of Illinois (via Phil Brasher of the Des Moines Register). In an analysis of past growing seasons, they suggest that commodity corn prices could reach $7 by summer. The reason for the potential coming price spike? Would you believe ethanol? Read More