Bad weather hurting 2008 corn crop. Price hits $7

More bad news for world food prices may be looming.
Heavy rain in the Midwest is hampering corn growers. Fields are flooded. That has prevented planting of corn in some areas, while elsewhere newly planted crops have been lost. Cool weather is also limiting crop development.
As a result corn prices hit $7 this week, a record! Wheat and soybeans also went up.
Increased demand for corn to make ethanol has contributed to a dramatic increase in world food prices. It had been hoped that the 2008 harvest would provide some relief for commodity markets, but that now looks unlikely.
The good news is that the weather forecast looks likely to improve next week.

Click here for an overview in The New York Times Business Day section.

- David Adams