Corn Prices Surge Amid Growing Fears Of Another Food Crisis

Even though we have a good corn crop this year, the situation next year will be much worse. The U.S. government said that leftover supplies will fall to a 15-year low, as reported in the Financial Times. From 2007 to 2008, grain prices shot up to all-time highs when talk of a worldwide food crisis occurred. Now again, the same dynamics are beginning to formulate. Fund managers are moving heavily on the buy side. For every seller, there are 31 buyers, setting a record, according to the Commodity Futures Trading Commission. The weak U.S. dollar is making corn more attractive to importers, according to Luke Chandler, grain analyst at Rabobank in London.