Tuesday, July 3, 2012

The Cost of Drought: Higher Corn Prices

The inimitable Great Santelli on CNBC this morning interviewed a commodities trader who also farms corn in southwestern Michigan. He said, "Right now we're at a drought situation at my farm. we're looking at five and a half weeks without water. The corn is waist high, getting ready to tassel. We need water."

The Midwest drought monitor (click to enlarge) through last Tuesday shows 71% of the area in some level of drought, with 5% at the Extreme level, mostly in Indiana and Illinois:

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