Indiana Grain Company, LLC

Posted: 09/14/11

By: tomgrisafi

Food prices could rise in the coming months after the summer heat likely damaged much of the nation's corn crop.

Figures from the U.S. Department of Agriculture show the number of bushels harvested in Delaware, Maryland and Virginia is expected to be greater than last year; however, the agency estimated Monday that a nationwide surplus of 672 million bushels of corn will be left over at the end of next summer.

That estimated surplus is down from last month's forecast and well below levels that are considered healthy.

Farmer Derek Wells has roughly 4,000 acres of farmland outside of Milton, Delaware. Wells said his non-irrigated crop took a hard hit from summer heat though he will try to salvage as much as he can.

Farmers are dealing with rising gas prices, an uncertain economy and changes in the stock market as investors pour their money into commodities, Wells said.

For shoppers it's simple supply and demand: less corn could push up the price of a bushel. And since corn is found in so many grocery store products, the price increase is expected to trickle down to the average customer.

Wells said the trickle down effect will likely take several months to feel because major corn purchasers generally buy their supply about a year in advance.

Source: WBOC News

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