Due to the jump in grain prices for CORN (quote) and soybeans (SOYB, quote) from the drought in the Midwest farm belt of the United States, the United Nations Food and Agriculture Organization’s food price index rose 6% in July, the steepest spike in nearly three years.
Wednesday’s best web covers Brazilian aid and influence in Africa, new mining laws in the Philippines, rare earth mining in China, surging global food prices, and Chinese secrets getting out.
When the U.S. Department of Agriculture releases its most recent corn crop estimate in its World Agricultural Supply and Demand Estimates (WASDE) report, the results are not expected to be pleasing for those who must buy grain crops.
Although there would not seem to be an obvious correlation between natural gas (UNG, quote) and corn (CORN, quote), the record heat in the United States has resulted in one. Both the exchange traded funds for natural gas and corn are up as a result of the heat; both will likely fall once the weather cools.
The exchange-traded funds for corn, Teucrium Corn (CORN, quote), and soybeans, Tecucrium Soybean (SOYB, quote), are both trading near year highs due to the drought in the Midwest farm belt of the United States. As the United States produces about 40% of the world’s corn, this has driven the price upward to record levels.