This article in the Wall Street Journal starts with a few quick implications- the rise will raise prices of tortilla chips and Coca cola!- but fortunately the story deepens as it goes.
Anyway, the quick headline: corn prices are up 50% in the last few months, and have doubled over the past year. That's a big jump. The question is, why? Is it the changing US economy as we step back from the pandemic and prepare our vaccinated selves to return to indoor dining? In a word, NO.
It turns out that China had an outbreak of disease among hogs and they had to kill many, so now they are eager to fatten up and sell off the next crop. At the same time, central South America has had less rainfall than usual, which means less harvest of that corn crop... and difficulties exporting the crop they do harvest, since some rivers are low.
There is actually one piece that is linked to US corn- I had no idea how much ethanol was still put in folks' gas tanks. Turns out that accounts for about 40% of US corn- wow.
And of course, as corn prices rise they will take the price of chicken to new highs, which too are already well above pandemic lows. Inflation, anyone? *Image below from ^^
