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The Chicago Sun-Times reports that the rains and floods that have ravaged the American Midwest also are resulting in high corn prices. According to the story, “the floods have the dual effect of reducing supply from damaged acreage and intensifying demand as nations that need grain rush orders to ensure they have enough.”

The paper notes that “corn prices reached records Monday at the Chicago Board of Trade as Midwestern floods caused investors to bet the market will head higher to the detriment of consumers … At the CBOT, corn futures for December delivery shot up nearly 4 percent to approach the $8 per bushel mark for settling back unchanged for the day at $7.65. The July corn contract also gave up the day's gains before finishing less than a penny higher at $7.324.

“The price of corn is up 20 percent this year and more than 80 percent over the last 12 months. Monday's session was the eighth straight of record corn prices at the CBOT. After the market's close, the USDA issued a report saying the condition of the nation's corn and soybean crops deteriorated from the prior week. The agency said 57 percent of the corn crop was in good or excellent condition as of Sunday, down from 60 percent a week earlier and from 70 percent for the same time last year.”

KC's View:
Sounds bad, but not nearly as awful as what the families are dealing with in the Midwest…as so many people watch their homes, jobs and lives get washed away.