Monday, February 14, 2011

Demand for corn outstrips supply

U.S. corn reserves are at a 15-year low, fueling fears of rising prices in the supermarket.

Chad E. Hart, an assistant professor of economics at Iowa State University and a grain market specialist, thinks consumers will notice an increase in prices -- notably at the meat counter -- within six to nine months.

Corn is used to feed cattle, hogs and chickens. Subsequently, he adds, livestock producers will be negatively impacted because of the higher feed costs. As the livestock inputs increase, they're passed on to the consumer.

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