Rising corn prices also affect ethanol, cattle

Corn prices are up 19 percent in just the last four trading days, boosting the crop’s value by billions of dollars. However, what’s good for farmers could disrupt ethanol production and push up meat prices. Corn futures for December delivery closed Tuesday at $5.79 a bushel, up 23.25 cents from Monday and 90.5 cents from last Wednesday. As recently as mid-June, corn traded around $3.60 a bushel. Prices have risen as farmers report decreased yields because of moisture damage to corn plants. The exact gain to farmers is unclear, depending on how much of their crop has been presold for forward or futures contracts and at what prices. But hog and cattle producers now are faced with higher feed costs just as they emerge from a three-year period of losses caused by the first wave of corn price increases that began in 2007...more