Commodity prices are rising partly because of the ethanol plants that are build throughout the Midwest. Corn is the bus and it's driving the grain market. Because corn can be sold at a premium price, farmers that used to plant soy beans, black oil sunflower seed, millet or Milo are now planting corn. This year the planting intention for corn was 92 million aces which is much higher than any previous years. This year increase in corn acreage caused a shortage in black sunflower seed which is the prime ingredient used by Fritolay the largest snack manufactuer in the country. Fritolay used to pay $9.00 per 100 lb a year ago now they are paying $22.00 per 100 lb. In addition, as a result of the high corn based ethanol demand dog food, and catel feed are compiting with those plant for corn, which in turn creates an increase in price of dog food and beaf meat.
Michee mpeti
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1 comment:
Good article....i enjoyed reading it.
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