I read an article a day or two ago that makes me worry again. See, as we all know, there’s quite a drought going on in many parts of the country, with record high heat waves sweeping across the nation.
Where’s the impact to the food supply? Corn. Corn yield estimates are down about 10% already, with almost a quarter of the nations corn fields considered in poor condition.
Corn prices are up 27% so far this month. Wheat is up about that much too.
Now what’s in just about all of the commercial food sold? That’s right. Corn and corn derivatives such as high fructose corn syrup.
I’m sure you can do the math on what that’s likely to mean for food prices. Supply and demand, right?
But wait, there’s more! What eats corn? Most of the cattle we eat in this country as well as a fair amount of other livestock such as pigs, sheep, and the like have diets that are predominantly based on corn and other grains.
Last time this happened ranchers sold their herds off way before they normally would so that they didn’t have to pay the massively inflated feed prices. This resulted in cheaper beef for a bit, followed by massively higher prices when the glut in supply turned into a dearth.
We’re keyed up for this to happen yet again.
Are you ready?